You Form a Partnership with Your Best Friend

question 41

Multiple Choice

You form a partnership with your best friend.You have contributed 65% of the capital and can claim 65% of the net income.At the end of the first year,you discover that your partner has run up $40,000 in debt using the business' credit card.The maximum you could be liable for is:

• A)$0.
• B)$40,000.
• C)$20,000.
• D)$26,000.

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Definitions:

Policies

Guidelines or rules established by organizations or governments to direct actions and decisions.

Employees' Needs

The physiological, security, social, esteem, and self-actualization requirements of employees that, when met, can lead to higher motivation and job satisfaction.

HRM Decisions

HRM Decisions involve strategic and operational decisions made by the Human Resources Management team concerning employee recruitment, development, retention, and other personnel-related policies.

Transaction Processing

The handling of information and actions necessary to complete the purchase or sale of securities in the financial market.