Multiple choice

In which of the following business organisations does every member act both as an agent and as a principal?

  1. Partnership

  2. Joint stock company

  3. Corporation

  4. Cooperative society

  5. All of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A partnership is an arrangement in which parties agree to cooperate to advance their mutual interests. Under common law legal systems, the basic form of partnership is a general partnership in which all partners manage the business and are personally liable for its debts. In partnership, every member acts both as an agent and as a principal.

Keep practicing — related questions