Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 15, Problem 4MC
Mutual agency is defined as:
A. a mutual agreement
B. the right of all partners to represent the company’s normal business operations
C. a synonym for
D. a partnership between two partnerships
Expert Solution & Answer
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Students have asked these similar questions
A partnership where all partners may participate in management of the company, but whose personal liability is limited to that resulting from their own actions or those who are acting under their direct supervision is a:
a.
limited partnership
b.
general partnership
c.
limited liability partnership
d.
mutual agency
A partnership characteristic which states that a partner, acting within
the scope of the operations of the business, may bind the partnership
and make it liable to third parties is termed as
O Voluntary association
O Co-ownership of assets
O Separate legal entity
Mutual agency
The characteristic of a partnership where a partner is an agent for other partners and the partnership when transacting partnership business is:
a.
a fiduciary relationship
b.
tenancy in partnership
c.
mutual agency
d.
the proprietary theory
Chapter 15 Solutions
Principles of Accounting Volume 1
Ch. 15 - A partnership ________. A. has one owner B. can...Ch. 15 - Any assets invested by a particular partner in a...Ch. 15 - Which of the following is a disadvantage of the...Ch. 15 - Mutual agency is defined as: A. a mutual agreement...Ch. 15 - Chani contributes equipment to a partnership that...Ch. 15 - Juan contributes marketable securities to a...Ch. 15 - Which one of the following would not be considered...Ch. 15 - A well written partnership agreement should...Ch. 15 - What type of assets may a partner not contribute...Ch. 15 - How does a newly formed partnership handle the...
Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - When a partnership dissolves, the first step in...Ch. 15 - When a partnership dissolves, the last step in the...Ch. 15 - Prior to proceeding with the liquidation, the...Ch. 15 - Does a partnership pay income tax?Ch. 15 - Can a partners personal assets in a limited...Ch. 15 - Can a partnership assume liabilities as part of...Ch. 15 - Does each partner have to contribute an equal...Ch. 15 - What types of bases for dividing partnership net...Ch. 15 - Angela and Agatha are partners in Double A...Ch. 15 - On February 3, 2016 Sam Singh invested $90,000...Ch. 15 - Why do partnerships dissolve?Ch. 15 - What are the four steps involved in liquidating a...Ch. 15 - When a partner withdraws from the firm, which...Ch. 15 - What is the first step in a partnership...Ch. 15 - When a partnership liquidates, do partners get...Ch. 15 - Coffee Partners decides to close due to the...Ch. 15 - On May 1, 2017, BJ and Paige formed a partnership....Ch. 15 - The partnership of Chase and Chloe shares profits...Ch. 15 - The partnership of Tasha and Bill shares profits...Ch. 15 - Cheese Partners has decided to close the store. At...Ch. 15 - The partnership of Michelle, Amal, and Maureen has...Ch. 15 - The partnership of Tatum and Brook shares profits...Ch. 15 - Arun and Margot want to admit Tammy as a third...Ch. 15 - When a partnership is liquidated, any gains or...Ch. 15 - The partnership of Magda and Sue shares profits...Ch. 15 - The partnership of Arun, Margot, and Tammy has...Ch. 15 - Match each of the following descriptions with the...Ch. 15 - While sole proprietorships and corporations are...Ch. 15 - A partnership is thriving. The three partners get...
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- Briefly introduce the legal nature of partnerships and companies, with emphasis on the contractual principles governing the formation and discharge of partnership agreement.arrow_forwardWhich of the following is NOT a principal characteristic of the partnership form of business organization? Association of individuals Limited liability Limited life Mutual agencyarrow_forwardBriefly describe about partnership. What fundamentals of partnership agreement are necessary in the business? Also differentiate between charge and appropriation.arrow_forward
- A partnership whose main activity is rendering services (examples include public accounting firms, law and notarial offices, and diagnostic and medical clinics) is classified as a O Non-trading partnership O Trading partnership O General partnership O Limited partnershiparrow_forwardDescribe the Advantages and Disadvantages of Organizing as a Partnership from an accounting viewarrow_forwardWhich of the following is not a characteristic of a partnership firm? Select one: A. Limited Liability B. Easy Formation C. Mutual Consent D. Equal Profitsarrow_forward
- In partnership, partners act in common or act as an agent to one another . What does this mean??arrow_forwardA partnership that consists of two classes of partners, one that participates in management of the company and have unlimited liability, and another that does not participate in management and whose liability is limited to a stated amount is a: a. limited partnership b. general partnership c. limited liability partnership d. mutual agencyarrow_forwardIn general, a partnership is described as a legal relationship that exists between two or more people who carry on a joint business with the goal of benefit. (a) Describe the different types of partners and their characteristics. (attached point form answer for this question; kindly assist me to elaborate more on each points) (b) Determine the conditions that must be met for a partnership to exist.(attached point form answer for this question; kindly assist me to elaborate more on each points)arrow_forward
- Which of the following best describes the articles of partnership agreement? Multiple Choice The articles of partnership are a legal covenant that may be expressed orally or in writing, and forms the central governance for a partnership's operations. The articles of partnership are an agreement that limits partners' liability to partnership assets. The articles of partnership are a legal covenant and must be expressed in writing to be valid. The purpose of the partnership and partners' rights and responsibilities are required elements of the articles of partnership.arrow_forwardA.What is partnership accounts and what are the necessary components ofpartnership accounts that a company should consider when preparingpartnership accounts and why?B. How can you differentiate the company’s accounts from partnership accounts and on what grounds?arrow_forwardA general partnership may be formed by Group of answer choices either oral or written agreement. oral, written, or implied agreement. written agreement. oral agreement.arrow_forward
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