A misrepresented himself to be a board of director of a Corporation TYY. Due to this misrepresentation, A incurred debts to B. B thought that A was buying the supplies for Corporation TYY. What is the liability of A a. A bound the Corporation TYY to be liable against B b. A has no liability to B c. A has a personal liability to B d. A has a liability similar to a general partner

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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1. A misrepresented himself to be a board of director of a Corporation TYY. Due to this misrepresentation, A incurred debts to B. B thought that A was buying the supplies for Corporation TYY. What is the liability of A

a. A bound the Corporation TYY to be liable against B
b. A has no liability to B
c. A has a personal liability to B
d. A has a liability similar to a general partner

2. Z agreed that he will only contribute P500,000.00 to the partnership. He secured all his properties by making sure that all the partners are aware that he will only provide the money in the partnership. Now, the other partners are planning to commence a different business. Z disagreed. Can Z disagree with the other partners?

a. Yes. Being a partner, his consent is necessary in all the activities of the partnership.
b. No. Being a partner, he must respect the majority.
c. Yes. Being a partner, he is a co-owner.
d. No. Being a partner, he has no involvement in the management.


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