Question

‘The business of partnership firm can be carried on by all the partners or any one of them acting for all.’ This statement indicates which of the following characteristic of partnership?

Options

• Agreement

• Implied authority

• Mutual agency

• Utmost good faith

Answer 1

Mutual agency

Explanation:

The idea of joint agency is shown in this sentence. This means that each partner works for the company as both an agent and a principal. These words show that any partner can bind the company and the other partners through their actions in the business.