Question

Where authority of a partner is conferred by mutual agreement, it is called as _______________.

• A. Implied authority
• B. Express authority
• C. Ostensible authority
• D. Apparent authority

Answer 1

The correct option is B Express authority

The partnership agreement lies in Mutual agency relationship which refers to the mutual relationship and understanding between the partners of a business where every partner acts as an agent as well as a boss for the other partner. Therefore, the authority which the partners carry can be expressed to the other partners and these are called express authority.