Jamie and Maria Invested All Their Savings in a Small

question 315

Multiple Choice

Jamie and Maria invested all their savings in a small pizzeria they opened outside the University of Western Kentucky.They operated the business as a general partnership.After 11 months,the business went broke and Jamie and Maria were left with outstanding bills of $37,500,which was more than their initial investment in the company.Jamie and Maria can:

• A)Lose their personal assets as the result of their company's financial problems.
• B)Lose only the funds they originally invested in their company.
• C)Lose only the total value of the assets actually used to operate the business.
• D)Avoid any liability for these debts since a partnership is considered to be a business entity that is separate and distinct from the partners who own it.

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Definitions:

Prior Probabilities

The probabilities that are assigned to events or hypotheses before any relevant evidence is taken into account, used in Bayesian analysis.

Likelihood Probabilities

Measures of how probable different outcomes are, given a specific set of observed data, in statistical analysis.

Joint Probabilities

The likelihood of two or more events happening at the same time.

Marginal Probabilities

The probability distribution of the random variables individually, without regard to any possible correlations between them.