Liability of the partnership for the act of one partner in case of public accounting firm

Question

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Answer 1

Question

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.

Chapter 12, Problem 1QS

To determine

Liability of the partnership for the act of one partner in case of public accounting firm

Expert Solution

Explanation of Solution

Following the mutual agency concept of the partnership, each partner is the agent of the partnership business and has the ability to take decisions on behalf of the partnership and bound the partnership for the same.

In the given case, lester took decision for the partnership on behalf of all the partners as an agent. Hence partnership firm shall be liable for the purchase contract entered by Lester as an agent of the firm.

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Answer 2

Question

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.

Chapter 12, Problem 1QS

To determine

Liability of the partnership for the act of one partner in case of public accounting firm

Expert Solution

Explanation of Solution

Following the mutual agency concept of the partnership, each partner is the agent of the partnership business and has the ability to take decisions on behalf of the partnership and bound the partnership for the same.

In the given case, lester took decision for the partnership on behalf of all the partners as an agent. Hence partnership firm shall be liable for the purchase contract entered by Lester as an agent of the firm.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

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.

Chapter 12, Problem 1QS

To determine

Liability of the partnership for the act of one partner in case of public accounting firm

Expert Solution

Explanation of Solution

Following the mutual agency concept of the partnership, each partner is the agent of the partnership business and has the ability to take decisions on behalf of the partnership and bound the partnership for the same.

In the given case, lester took decision for the partnership on behalf of all the partners as an agent. Hence partnership firm shall be liable for the purchase contract entered by Lester as an agent of the firm.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

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.

Chapter 12, Problem 1QS

To determine

Liability of the partnership for the act of one partner in case of public accounting firm

Expert Solution

Explanation of Solution

Following the mutual agency concept of the partnership, each partner is the agent of the partnership business and has the ability to take decisions on behalf of the partnership and bound the partnership for the same.

In the given case, lester took decision for the partnership on behalf of all the partners as an agent. Hence partnership firm shall be liable for the purchase contract entered by Lester as an agent of the firm.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 12, Problem 1QS

To determine

Liability of the partnership for the act of one partner in case of public accounting firm

Expert Solution

Explanation of Solution

Following the mutual agency concept of the partnership, each partner is the agent of the partnership business and has the ability to take decisions on behalf of the partnership and bound the partnership for the same.

In the given case, lester took decision for the partnership on behalf of all the partners as an agent. Hence partnership firm shall be liable for the purchase contract entered by Lester as an agent of the firm.

Answer 6

Chapter 12, Problem 1QS

To determine

Liability of the partnership for the act of one partner in case of public accounting firm

Expert Solution

Explanation of Solution

Following the mutual agency concept of the partnership, each partner is the agent of the partnership business and has the ability to take decisions on behalf of the partnership and bound the partnership for the same.

In the given case, lester took decision for the partnership on behalf of all the partners as an agent. Hence partnership firm shall be liable for the purchase contract entered by Lester as an agent of the firm.

Answer 7

Chapter 12, Problem 1QS

To determine

Liability of the partnership for the act of one partner in case of public accounting firm

Answer 8

Expert Solution

Explanation of Solution

Following the mutual agency concept of the partnership, each partner is the agent of the partnership business and has the ability to take decisions on behalf of the partnership and bound the partnership for the same.

In the given case, lester took decision for the partnership on behalf of all the partners as an agent. Hence partnership firm shall be liable for the purchase contract entered by Lester as an agent of the firm.