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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


Team Careers360 22nd Jan, 2024
Answer (1)
Team Careers360 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.

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