Why is a rule for operating the bank account given in the deed?

Correct answer: To decide who will sign

The direct answer is A: the deed states who is authorized to sign and operate the bank account. A firm receives and pays money through its bank account, so clear authority is important for control and safety. The deed may specify whether one partner can sign alone, whether two partners must sign jointly, or what procedure applies to cheques and other instructions. Option A is correct because it identifies the decision that must be made: who may operate the account and authorize transactions. This reduces confusion and helps prevent unauthorized withdrawals. Option B is wrong because a bank-operation rule does not buy a bank building. Option C is wrong because a bank is not made a partner simply by being used for banking services; partnership requires an agreement among persons capable of becoming partners. Option D is wrong because the rule does not ignore cash; it controls the firm’s banking transactions and supports proper cash management. Thus this clause is about authority, accountability, and protection of partnership funds. Memory cue: bank-operation clause means “who can sign and who can authorize payment.”