A firm has two partners: Jim and Bill.Jim owns 60% of the partnership and Bill owns 40%.In which of the following transactions will the partnership be held responsible for an individual partners' actions?
A) Jim signs a contract as a guarantor for Bill's personal loan.
B) Jim buys a laptop on credit for personal use.
C) Bill signs a contract to buy furniture for official use in the partnership.
D) Bill defaults on payment of his personal credit card bill.

Question

Quizplus · Accepted Answer

Bill signing a contract to buy furniture for official use in the partnership directly relates to the business operations of the partnership. Therefore, the partnership would be held responsible for this action as it falls within the scope of the partnership's activities.

A Firm Has Two Partners: Jim and Bill