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easyMCQCUET Accountancy 2025 24 May Shift 12026Accountancy
1 mark

Which of the following characteristics is highlighted in the statement: "He can bind other partners by his acts and also is bound by the acts of other partners with regard to the business of the firm."

  1. A
    Agreement between Partners
  2. B
    Liability of Partners
  3. C
    Sharing of Profit
  4. D
    Mutual Agency

Solution & Step-by-step Explanation

The statement explicitly outlines the concept of Mutual Agency, where every partner acts simultaneously as both a principal and an agent for all other partners in transactions regarding the regular business of the firm.

Practice this question

Try it yourself before checking the explanation above.

Which of the following characteristics is highlighted in the statement: "He can bind other partners by his acts and also is bound by the acts of other partners with regard to the business of the firm."
A
Agreement between Partners
B
Liability of Partners
C
Sharing of Profit
D
Mutual Agency

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