Mutual Agency Means That Any Partner Can Legally Bind the Other

question 128

True/False

Mutual agency means that any partner can legally bind the other partners and the partnership to business contracts within the scope of the businesses regular operations.

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Definitions:

Acquisition Cost

The total cost associated with acquiring an asset, including the purchase price and any additional expenses necessary to get the asset ready for use.

Double-Declining-Balance

A method of accelerated depreciation that doubles the straight-line depreciation rate; it applies this rate to the book value of the asset at the beginning of each year.

Depreciation

The process by which a business spreads out the cost of a capital asset over its expected useful life.

Double-Declining-Balance

A method of accelerated depreciation which doubles the straight-line depreciation rate, resulting in a faster depreciation of assets in the early years of their life.