Multiple choice

Which of the following acts is not included in the implied authority of a partner?

  1. To buy or sell goods on account of partnership

  2. To borrow money for the purposes of firm

  3. To enter into partnership on behalf of firm

  4. To engage a lawyer to defend actions against firm

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A partner cannot enter into partnership on behalf of the firm.