I was presented with theorems which state: If $\lim_{x\to a}f(x) = l$ and $\lim_{x\to a}g(x) = m$, then $$\lim_{x\to a}(f \cdot g)(x) = l \cdot m$$ $$\lim_{x\to a}(f + g)(x) = l + m$$ if $m \neq 0$,$$\lim_{x\to a}\Bigl(\frac 1g\Bigr)(x) = \frac 1m$$
When solving for example$$\lim_{x\to \infty}\sqrt{1 + \frac 1x},$$ I've seen teachers take the limit of each value in the radicand separately. What allows them to initially evaluate the limit of the radicand in the first place?
Good quesion. In fact, you have to be fairly careful when doing this.
It's because if $f$ and $g$ are continuous functions, then $$\lim_{x\to a}{f(g(x))} = f(\lim_{x\to a} g(x)$$ In your case, you can take $f(x)=\sqrt x$ and get the solution.