Partnership : Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio. Owner's authority and authorization: A partnership works on the concept of Mutual Agency. As per Mutual agency concept, each partner is principal as well as the agent of another partner; they work for the benefit of partnership firm together. 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. To Discuss: The meaning of the term “Mutual Agency” in case of a partnership.

Question

Want to see the full answer?

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 2DQ

To determine

Concept Introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Owner's authority and authorization: A partnership works on the concept of Mutual Agency. As per Mutual agency concept, each partner is principal as well as the agent of another partner; they work for the benefit of partnership firm together. 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.

To Discuss: The meaning of the term “Mutual Agency” in case of a partnership.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Could you help me solve this financial accounting question using appropriate calculation technical.

Please given correct answer for General accounting question I need step by step explanation

Provide correct solution with accounting question

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 2DQ

To determine

Concept Introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Owner's authority and authorization: A partnership works on the concept of Mutual Agency. As per Mutual agency concept, each partner is principal as well as the agent of another partner; they work for the benefit of partnership firm together. 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.

To Discuss: The meaning of the term “Mutual Agency” in case of a partnership.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

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 2DQ

To determine

Concept Introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Owner's authority and authorization: A partnership works on the concept of Mutual Agency. As per Mutual agency concept, each partner is principal as well as the agent of another partner; they work for the benefit of partnership firm together. 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.

To Discuss: The meaning of the term “Mutual Agency” in case of a partnership.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

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 2DQ

To determine