Question

Mutual agency means:_______.

A) Creditors can apply their claims to partners' personal assets.
B) Partners are taxed on partnership withdrawals.
C) All partners must agree before the partnership can act.
D) The partnership has a limited life.E) A partner can commit or bind the partnership in any contract within the scope of the partnership business.

Answer 1

.E) A partner can commit or bind the partnership in any contract within the scope of the partnership business.

Step-by-step explanation:

.E) A partner can commit or bind the partnership in any contract within the scope of the partnership business.

Mutual agency means that rights of all partners and authority committed or bind the partnership in any contract representing the business operations.

Any partner can act on behalf of the others and acts of each of the partners is binding for all the partners.

Choices A, B ,D are all characteristics of partnership but not mutual agency.