Ray, Ronnie and Joe Are Partners in a Limited Partnership

question 27

Multiple Choice

Ray, Ronnie and Joe are partners in a limited partnership.Ray and Ronnie, the limited partners, each own 45 percent of the partnership and Joe, the general partner, owns the other 10 percent.The partnership incurs $50,000 of nonrecourse debt and $100,000 of recourse debt.What is the effect on Joe's basis for these debts?

• A)Increases by $155,000
• B)Increases by $105,000
• C)Increases by $100,000
• D)Increases by $15,000

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Definitions:

Performance Monitoring

The continuous process of tracking and evaluating the efficiency, output, or quality of work by individuals, teams, or systems within an organization.

Top Management

The highest level of executives responsible for the direction and strategy of an organization or company.

Miles and Snow Adaptive Model

A strategic management theory that categorizes companies into four types (Defenders, Prospectors, Analyzers, Reactors) based on their response to environmental changes and competitive structures.

Market Share

The portion of a market controlled by a particular company, expressed as a percentage of total sales in an industry.