Partners Are Responsible for the Debts and Obligations of the Partnership.With

question 121

Multiple Choice

Partners are responsible for the debts and obligations of the partnership.With respect to contracts,each partner is considered to be:

• A)the primarily liable party if the partner takes on the role of agent.
• B)a principal of any contract entered into by an employee of the partnership.
• C)an agent of the other partners so that any contract entered into by one partner with respect to the partnership business is binding on them all.
• D)an agent of the partnership only so that any contract entered into by one partner only binds the partnership entity itself and not the other partners.
• E)liable only for his or her capital investment should a breach of contract occur.

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Definitions:

Eurobond Agreement

An international bond that is denominated in a currency not native to the country where it is issued, often used by companies and governments to raise capital.

Short-Term

Relating to a brief period of time, typically less than a year.

Covered Interest Arbitrage

A strategy where investors exploit the interest rate differential between two countries while covering exchange rate risk, aiming for guaranteed returns.

Forward Rates

Forward rates are interest rates or foreign exchange rates fixed now for a financial transaction that will occur at a future date.