Question : Relationship between the partners is of
Option 1: Close relatives
Option 2: Agent and Principal
Option 3: Junior-senior relationship
Option 4: Senior-Subordinate relationship
Answer (1)
25th Jan, 2024
Correct Answer: Agent and Principal
Solution :
Answer =
Agent and Principal.
The business must be carried on by all the partners or any of them acting for all. There must be mutual agency. They represent the firm (principal) in business transactions and also act on behalf of other partners (agents). This dual role reflects the mutual trust and delegation of authority inherent in the partnership structure.
Hence, the correct option is 2.
Comments (0)
