Mutual agency refers to the fact that each member of the partnership form of business entity can bind the other(s) in contract within the scope of normal operations.

Question

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This statement is true. Mutual agency is a fundamental characteristic of partnerships, which means that each partner has the authority to act on behalf of the partnership and bind the other partner(s) to contracts or legal obligations within the scope of the partnership's normal business operations.

Mutual Agency Refers to the Fact That Each Member of the Partnership