Multiple Choice
In many public meetings,John has proclaimed himself to be an equal partner of Chan's partnership business.Chan's business ran into financial difficulties.John and Chan approached a creditor to obtain loan.The creditor gave the loan based on a false presumption that John was a partner in the business too.Can John be made liable for the loan?
A) Yes,because John is a close acquaintance of Chan;thus it is his ethical duty to help Chan during her financial trouble.
B) Yes,because John is a purported partner;public representations of his partner status make him personally liable for the debt.
C) No,because he is not legally a partner;the creditor should have checked the partnership agreement before advancing the loan.
D) No,because John did not participate in the business;he was thus not a member of the partnership business.
Correct Answer:

Verified
Correct Answer:
Verified
Q11: Which of the following is true of
Q16: Which of the following is an advantage
Q22: Jane and Ridge are partners in a
Q24: Mr.Olive and Mrs.Pickle enter into a partnership
Q28: A joint venture is a(n):<br>A) association limited
Q31: Which of the following is not essential
Q32: Although not required,a partnership agreement is highly
Q33: No formalities are required in order to
Q73: The general law governing general partnerships is
Q83: A _ is a partnership whose partners