CHARLIE Enterprise is owned by partners A, B, C, D, and E. E is the manager of the company whose business is importation and trading of optical equipment. During the year, the partners authorized A to buy a delivery van for the partnership. No other authority was given to the other partners. The following are transactions entered into by the partners for the year:Importation of optical equipment by Melendez.Sale of optical equipment by B to DEF Visions Company whose owner, X, was not aware that B has no authority.III. Purchase of a delivery van by C from Rusi Motors whose owner, Y, was not aware that C had no authority.Purchase of a delivery van by A. Which of the above transactions are binding on CHARLIE Enterprise?a.I, II and IV.b.I, III and IV.c.I and IV.d.I and II.

The answer to this question is I, III and IV

Answered: authority was given to the other…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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CHARLIE Enterprise is owned by partners A, B, C, D, and E. E is the manager of the company whose business is importation and trading of optical equipment. During the year, the partners authorized A to buy a delivery van for the partnership. No other authority was given to the other partners. The following are transactions entered into by the partners for the year:

Importation of optical equipment by Melendez.
Sale of optical equipment by B to DEF Visions Company whose owner, X, was not aware that B has no authority.

III. Purchase of a delivery van by C from Rusi Motors whose owner, Y, was not aware that C had no authority.

Purchase of a delivery van by A. Which of the above transactions are binding on CHARLIE Enterprise?

a.I, II and IV.

b.I, III and IV.

c.I and IV.

d.I and II.

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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