Since all partners are bound together in the agreement and each acts on the behalf of the partnership,________ has been established.
A)limited life
B)limited risk
C)mutual agency
D)unlimited liability

Question

Quizplus · Accepted Answer

Mutual agency is established in a partnership, meaning that each partner has the authority to act on behalf of the partnership as a whole. This means that each partner can make decisions and enter into agreements on behalf of the partnership, and these actions are binding on all partners. Limited life refers to the idea that a partnership is dissolved upon the death or withdrawal of a partner, while limited risk refers to the concept that partners are only liable up to the amount of their investment in the partnership. Unlimited liability means that partners are personally responsible for all debts and obligations of the partnership, even if it exceeds their investment.

Since All Partners Are Bound Together in the Agreement and Each