Which of the following would be within a winding-up partner's implied authority to borrow money?
A)Taking a new loan to consolidate the partnership's existing loans to make payments more convenient.
B)Taking a new loan to buy more assets.
C)Refinancing a loan to preserve a valuable asset.
D)Refinancing a loan to buy more time.

Question

Quizplus · Accepted Answer

Usually,the implied authority of a winding-up partner includes no power to borrow money in the name of the partnership.Nonetheless,when a partner can preserve the assets of the partnership or enhance them for sale by borrowing money,he has implied authority to engage in new borrowing.

Which of the Following Would Be Within a Winding-Up Partner's