Which of the Following Is TRUE of the Assets of a Partnership

question 115

Multiple Choice

Which of the following is TRUE of the assets of a partnership?

• A) The partner who is more actively involved in the daily business affairs is considered to be the sole owner of the partnership's assets.
• B) Any new assets purchased by the partnership are jointly owned by each partner.
• C) When a partner contributes a particular asset to the firm, he is considered to be the sole owner of the asset.
• D) In the case of the liquidation of a partnership, the partners must be paid based on the profit sharing ratio of the partnership.

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Definitions:

Unauthorized Agent

An individual who acts on behalf of another party without being granted the legal or official authority to do so.

Respondeat Superior

A legal doctrine holding employers liable for the actions of their employees performed within the scope of their employment.

Agent's Torts

Wrongful acts committed by an agent or employee that result in liability for the employer or principal.

Undisclosed Principal

A situation in a contract where the agent acts on behalf of a principal whose identity is not revealed to the third party.