The Principle Whereby Each Partner Is Responsible for the Business

question 3

Multiple Choice

The principle whereby each partner is responsible for the business actions of all other partners when the actions are carried out in the normal course of business, is known as:

• A)the rule in Garner versus Murray.
• B)unlimited liability.
• C)mutual agency.
• D)perpetual life.

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Definitions:

Fair Value

A measure of the price at which an asset could be bought or sold in a current transaction between willing parties, other than in a liquidation sale.

Ethical Challenge

Situations or problems requiring a person or organization to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical).

Acquisition

The process of obtaining control of another company or business entity through purchase, merger, or other means.

Outstanding Shares

Refers to the total number of shares of a corporation's stock that are owned by shareholders at any given time.