In a Partnership, Mutual Agency Means That

question 62

Multiple Choice

In a partnership, mutual agency means that:

• A)the addition of a new partner does not dissolve the old partnership and mutually exchange the ownership with the exiting partner.
• B)every partner must bring the same amount of capital.
• C)the agency problem between the principal and agents are mutual and gets neutralized.
• D)any partner can bind the business to a contract within the scope of its regular business operations.

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Definitions:

Peripheral Members

Those participants in a group or organization who have a lower level of involvement or are marginal to the core activities.

Core Members

Individuals who are central to a group or team, typically taking on leadership roles, heavily influencing decision-making, or being crucial to the group's function.

Clique Network

A social network characterized by tightly knit groups of individuals who frequently interact with each other, often to the exclusion of outsiders.

Boundary-spanning Network

A network of relationships and interactions that extends beyond the internal boundaries of an organization, connecting it with external entities and information.