ACTG 1P71 Lecture : Partnerships.docx

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burgundyplatypus606

14 Apr 2012

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Document Summary

In some cases, agents will negotiate on the behalf of an undisclosed principle. The agent does not reveal the identity, but gives all the details for the information. However, the third party can still sue the undisclosed principle later as long as they have followed their duties. In some cases, the agent will negotiate for someone else without telling the third party. In this case, the third party is not told that the agent is representing a third party. The third party would therefore sue the agent. If the agent was told not to tell the third party that he was representing the principle, then the third party can sue the agent who can then sue the principle. Ex: gm wants to accumulate some land area in a new area but did not want to reveal their identity as the owner"s of the new land.

Related Questions

Answer borth questions below wiht paragraph and recieve thumbs up ^^

Why do you think it is important we have a third party/outside audit firm review the accounting records?

How following the 3% rule precisely, and ignoring the overall principle that there must be external validity (an independent outside buyer/seller) to allow the recording of profit, led to manipulation?

ochreserval976

Suppose Joe is a partner at adental firm. Joe engages in a business transaction and binds thepartnership to an agreement regarding purchasing X-ray equipment.However, Joe really didn't have authority to bind the partnershipto the agreement with the third party X-ray machine company. Thethird party, however, believes he does have the authority. In thiscase, who is liable?

The partnership is liable for theobligation in the agreement.

The third party is liable for theobligation in the agreement.

Neither the partnership nor Joe isliable for the obligation in the agreement.

Both the partnership and Joe areliable for the obligation in the agreement.

Joe is liable for the obligation in the agreement.

Which of the following is not arequired element of the definition of a partnership?

1.	The partners would beco-owners.
2.	An association.
3.	To carry on a business for aprofit.
4.	All of these are elements of thedefinition of a partnership.
5.	Between two or more legal persons.

greenelk670

Listed below are several information, characteristics, andaccounting principles and assumptions. Match the term with theappropriate phrase that states its application.
(Points : 30)

Potential Matches:

1 : Application of the same accounting principles as in thepreceding year

2 : Earning process completed and realized or realizable

3 : Notes as part of necessary information to a fairpresentation

4 : Valuing assets at amounts originally paid for them

5 : Yearly financial reports

6 : Stable dollar assumption

7 : Affairs of the business distinguished from those of itsowners

8 : Presentation of error-free information withrepresentational faithfulness

9 : Business enterprise assumed to have a long life

10 : Accruals and deferrals in adjusting and closingprocess

Answer