Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Partnership

Question:
What is the relationship among the partners in a partnership firm?
Options:
Agent and Principal
Close relatives
Junior-Senior
Senior-Subordinate
Correct Answer:
Agent and Principal
Explanation:
There exists a mutual agency between the partners. Each partner carrying the business is principal as well as agent for all other partners.