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The Business of a Partnership Firm May Be Carried on by All the Partners Or Any One of Them Acting for All. One of the Important Implication of this Statement is that Every Partner is Entitled - Accountancy

Short Note

Answer the following question:
The business of a partnership firm may be carried on by all the partners or any one of them acting for all. One of the important implication of this statement is that every partner is entitled to participate in the conduct of the affairs of its business. State the second important implication of this statement.

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Solution

The other implication of this statement shall be that, anyone partner can act on behalf of all other partners thus, making them liable for his actions. Similarly, all other partners acting on behalf of one partner would thus, make this one partner liable for their actions (i.e. mutual agency).

Concept: Modes of Reconstitution of a Partnership Firm
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