Mutual agency of the owners is not present in a corporation as it is in a partnership.

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In a partnership, each partner has the authority to act on behalf of the other partners and the partnership as a whole. This is known as mutual agency. However, in a corporation, the owners (shareholders) do not have mutual agency as they have limited liability and the corporation is considered a separate legal entity. The management of the corporation is generally entrusted to a board of directors, who hire executives to run the company.

Mutual Agency of the Owners Is Not Present in a Corporation