Jonah and Jaycee are partners. Which of the following illustrates the concept of mutual agency?(1 point)

Question

Responses

Jaycee must have permission from Jonah before engaging in any business transactions.
Jaycee must have permission from Jonah before engaging in any business transactions.

Two partners are equally liable for damages that occurred while conducting business.
Two partners are equally liable for damages that occurred while conducting business.

Neither partner is liable for damages that occurred while conducting business.
Neither partner is liable for damages that occurred while conducting business.

Jonah signs a purchase agreement with a supplier while Jaycee agrees to hire a marketing firm to drum up business.

Answer 1

The response that illustrates the concept of mutual agency is:

Jonah signs a purchase agreement with a supplier while Jaycee agrees to hire a marketing firm to drum up business.

Mutual agency means that each partner has the authority to act on behalf of the partnership and make decisions that bind the partnership, which is demonstrated by both Jonah and Jaycee engaging in business transactions on behalf of their partnership.