Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Entrepreneurial Planning

Question:
Which feature of partnership allows any partner to act on behalf of the firm?
Options:
Utmost good faith
Unlimited liability
Implied authority
Agreement
Correct Answer:
Implied authority
Explanation:
There is an implied authority that any partner can act on behalf of the firm. The firm stands bound by the acts of partners.