Practicing Success
Practicing Success
CUET Preparation Today
| Assertion (A): "Mutual agency" feature of partnership form of business states that the business of partnership can be carried on by all the partners or any one of them acting for all. Reason (R): No partner is liable for acts performed by other partners and he cannot bind other partners and the firm by his acts. Find the correct option: |
Both A and R are true and R is the correct explanation of A. Both A and R are true and R is not the correct explanation of A. A is true but R is false. A is false but R is true. |
| A is true but R is false. |
| Mutual agency: The business of partnership can be carried on by all the partners or any one of them acting for all. Thus, every partner is principal as well as agent of other partners and of the firm. Thus, (i) Each partner is liable for acts performed by other partners, (ii) Each partner can bind other partners and the firm by his acts done in the ordinary course of business. |
