Chuck, Bob, and Bert form CB&B Partnership to run a specialty grocery store. Bert is the day-to-day manager of the store, Bob buys the groceries, and Chuck does all the administrative work. Bob decides he would like a new car to drive to visit prospective wholesalers. He makes a contract with Big Ben Motors in the name of CB&B without consulting Chuck and Bert. The partnership is:
A) bound by Bob's actual implied authority to buy a car.
B) not bound because buying a car is outside the scope of the partnership business.
C) bound by Bob's ostensible authority to buy a car.
D) bound by Bob's apparent authority to buy a car.
B
You might also like to view...
Performance reports are often part of a managerial reporting system known as a responsibility accounting/reporting system
Indicate whether the statement is true or false
Requiring two signatures on any check in excess of $10,000 is an example of which type of control?
a. Input control. b. Preventive control. c. Detective control. d. Processing control.
Porter’s forces of competition framework consists of how many forces?
a. three b. four c. five d. six
Which of the following is a disadvantage of joint ownership?
A) Jointly owned assets avoid probate. B) It makes it legal for one party to "take the money and run." C) It discourages compromise in the case of a divorce. D) None of the above is a disadvantage of joint ownership