If a Bonus Is Traceable to the Previous Partners Rather

question 16

Multiple Choice

If a bonus is traceable to the previous partners rather than an incoming partner, it is allocated among the partners according to the

• A)profit-sharing percentages of the previous partnership.
• B)profit-sharing percentages of the new partnership.
• C)capital percentages of the previous partners.
• D)capital percentages of the new partnership.

---

Definitions:

Unperfected

Refers to a security interest in property that has not been properly registered or publicized, and therefore may not have priority over other claims.

Surety

A person or entity that takes responsibility for someone else's performance, such as repaying a loan, appearing in court, or fulfilling a contract.

Creditor's Risk

The risk that a creditor will not receive the outstanding debt owed by a borrower, due to the borrower's default or inability to pay.

Cheerful Demeanor

Exhibiting a consistently happy and positive attitude in one’s behavior and interactions with others.