The Partnership Is the Least Common Form of Business Organization

question 124

True/False

The partnership is the least common form of business organization in the United States.

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Definitions:

Undisclosed Principal

A principal whose existence is not known by a third party. That is, the third party does not know that an agent is acting on behalf of a principal.

Agent

An individual or entity authorized to act on behalf of another (known as the principal) in dealings with third parties, creating a legal relationship called agency.

Authority

The power or right to give orders, make decisions, and enforce obedience, or a person or organization having such power.

Contract

A legal agreement between two or more parties that creates mutual obligations enforceable by law.