Question

The characteristic of a partnership that gives the authority to any partner to legally bind the partnership and all other partners to business contracts is called a.unlimited liability b.mutual agency c.dissolution d.ease of formation

Answer 1

Answer:

a.unlimited liability

Explanation:

The partnership is an agreement in which the two or more partners come in an agreement with a motive to share the profit or losses in the profit or losses sharing ratio

It has various characteristics like

1. Unlimited liability

2. Profit and losses sharing

3. Mutual agency

4. Easy to form

5. Lawful in the eyes of law.

Due to having unlimited liability, the authority would be given accordingly.