Darren and Glenda are partners in Git-n-go, a small convenience store, and their
ID: 1203528 • Letter: D
Question
Darren and Glenda are partners in Git-n-go, a small convenience store, and their business has grown to the point that Glenda decides the business needs to move into a larger building. She works with a realtor and finds a slightly larger building in what she considers an ideal location. Glenda goes to the bank and takes out a loan on behalf of the partnership for $20,000 which she uses as a down payment for the building. To raise the remaining money needed to purchase the building, Glenda sells the current Git-n-go building which is own by the partnership. Which of the following is tue? A. As a partner Glenda in Git-n-go Glenda had implied authority to borrow $20,000 on behalf of the partnership. B. As a partner in Git-n-go Glenda had implied authority to sell the current Git-n-go building. C. Rupa required that Glenda and Darren agree to sell the current Git-n-go building. D. All of the above are correct. E. A and C are correct but not B.
Explanation / Answer
The partners also have joint and several liability for all debts whether they are based in contract or tort. Although individual partners normally have implied authority to buy and sell goods for the partnership. D is the correct option
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