Which of the following is NOT true about the management powers of partners?
A)A partner whose name is not on the signature card filed with the bank does not have apparent authority to issue checks.
B)A partner's knowledge of material information relating to partnership affairs is imputed to the partnership.
C)A partner has implied and apparent authority to indorse and cash checks drawn payable to the order of the partnership.
D)A partner who has the authority to borrow money also has authority to issue negotiable instruments.

Question

Quizplus · Accepted Answer

A partner whose name is not on the signature card filed with the bank has apparent authority to issue checks,but only in respect to a third person who has no knowledge or notification of the limitation on the partner's authority.

Which of the Following Is NOT True About the Management