Update

Muft Shiksha™ एक 100% Free Education Portal है 🇮🇳, जिसका उद्देश्य Class 9–12 के हर विद्यार्थी तक High-Quality Education को पूरी तरह मुफ्त पहुँचाना है। 🇮🇳 हम मानते हैं कि अच्छी शिक्षा किसी student की आर्थिक स्थिति पर निर्भर नहीं होनी चाहिए। 🇮🇳 हर विद्यार्थी को वही Quality Study Material, MCQs, Quizzes, Exam Preparation, Concept-Based Learning और Bilingual Support मिलना चाहिए, जो आमतौर पर महंगी Coaching या Premium Platforms में मिलता है। Muft Shiksha™ 🇮🇳 इसी सोच के साथ बनाया गया है

Subjects
0 reads0 ratings0 helpful

Why is the power to borrow mentioned in a partnership deed?

Answer and explanation

Correct answer: To clarify who can borrow

A borrowing-power clause defines who may obtain loans or create borrowing obligations on behalf of the partnership and within what limits. The governing concept is authority and liability. The deed may require the consent of all partners, permit a named partner to borrow for ordinary business, set a monetary limit, or require approval for security and guarantees. Clear authority reduces the risk that one partner will undertake an unauthorised obligation that exposes the firm or the other partners to financial loss. Thus option A is correct because the clause clarifies who can borrow and under which conditions. It does not stop profits, erase salaries, or make goods free. Those alternatives have no logical connection with borrowing authority.

Related tags

Borrowing PowerResponsibilityPartnership DeedPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

Was this question useful?

No ratings yetWrite a review / Rate this question

Student Reviews

No published reviews yet.

Add Muft Shiksha to your Home Screen

In Safari, tap Share, then Add to Home Screen.