Which of the Following Is True Regarding the Implied Authority

question 68

Multiple Choice

Which of the following is true regarding the implied authority of partners?

• A) Partners generally have greater implied authority than typical agents.
• B) The implied authority of partners is usually determined by the nature of the business.
• C) A partner does not have implied authority to sell any partnership property without the consent of all other partners.
• D) Partners generally have greater implied authority than typical agents, the implied authority of partners is usually determined by the nature of the business, and a partner does not have implied authority to sell any partnership property without the consent of all other partners.
• E) The implied authority of partners is usually determined by the nature of the business, and a partner does not have implied authority to sell any partnership property without the consent of all other partners, but partners have less authority than typical agents.

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Definitions:

Note Payable

A financial obligation or loan evidenced by a promissory note, which requires the borrower to pay back the amount borrowed plus interest.

Incremental Borrowing Rate

The Incremental Borrowing Rate is the interest rate a company would have to pay if it borrows funds, used in lease accounting to measure lease liabilities.

Equipment

Tangible property owned by a business that is used in its operations to generate income.

Working Capital

A measure of a company's short-term financial health and operational efficiency, calculated as current assets minus current liabilities.