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The Apparent Authority of a Partner to Bind the Partnership

Question 38

Multiple Choice

The apparent authority of a partner to bind the partnership in dealing with third parties:


A) would permit a partner to submit a claim against the partnership to arbitration.
B) must be derived from the express powers and purposes contained in the partnership agreement.
C) will be effectively limited by a formal resolution of the partners of which third parties are aware.
D) will be effectively limited by a formal resolution of the partners of which third parties are unaware.

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