Role of Partners Including Implied Authorities Assignment Help

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  • The partners in a partnership firm bring necessary capital, resources and arrange all the other things to conduct business. Their interests are clear in the partnership agreement and it is clearly agreed what will be the profit sharing ratio and how the benefits/losses will be distributed.
  • Implied authorities are basically those persons to whom the power is given to act on behalf of the organization. They can be the agents of organization who are working for it or the partners themselves.
  • A business entity is a legal person in the eyes of law. But to conduct its operations people are required. For that authority is needed to act on behalf of the organization, such as to enter into contracts, conduct transactions, set off liabilities etc.
  • Role of partners including implied authorities is to see the welfare of They represent the business and therefore they have the authority to act on behalf of the firm. So their decisions affect firm and they are responsible for all the consequences.
  • The outside world sees an organization by the conduct of partners and implied authorities. So they are the agents of partnership firm who are conducting all business on behalf of business entity.

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