Match each statement to the appropriate term (a-h).
-Every partner can bind the business to a contract within the scope of the partnership's regular business operations

Question

Quizplus · Accepted Answer

Mutual agency means that each partner has the power to bind the partnership to contracts within the scope of the business operations.

Answer: B
 The partnership agreement outlines the rights and responsibilities of each partner, including how decisions are made and how profits are divided.

Answer: C
 In a partnership, any remaining profits after expenses and salaries are paid out are distributed among the partners.

Answer: H
 Partnerships have unlimited liability, meaning that each partner is personally responsible for debts and legal obligations of the business.

Answer: F
 If a partner dies, their share of the partnership will pass to their heirs or beneficiaries according to their will or estate plan.

Answer: G
 If a partnership decides to dissolve, its assets are liquidated and the proceeds are used to pay off debts and distribute any remaining profits to the partners.

Answer: A and E
 Partnerships are typically formed with partners having equal or proportionate ownership in the business. The partnership is a distinct legal entity from its partners.

Match Each Statement to the Appropriate Term (A-H)