Peter,Paul and Mary Have Agreed to Be General Partners to Purchase

question 121

Multiple Choice

Peter,Paul and Mary have agreed to be general partners to purchase and rehabilitate a dilapidated home,which they plan to renovate and then resell.Peter and Paul each put in 30%,and Mary contributes 40%,of the financial capital.Which of the following is a true statement?

• A) Each partner is personally liable for partnership debts, up to the extent of his or her capital contribution.
• B) Peter, Paul and Mary may name the partnership, "PPM, Inc."
• C) According to the majority rule, Peter, Paul and Mary are not required to file a written certificate of partnership.
• D) Mary, because of her larger capital contribution, has a larger vote in partnership decisions.
• E) According to the majority rule, Peter, Paul and Mary will be required to file a written certificate of partnership.

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Definitions:

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Small figurines, often based on movie, comic book characters, or real people, designed for children or collectors for play or display.

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The supplementary enjoyment or utility experienced by an individual from consuming one more unit of a good or service.

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The complete gratification obtained through the consumption of a specific quantity of products or services.

Marginal Utility

The additional satisfaction or benefit (utility) that a consumer derives from consuming an additional unit of a good or service.