The AB, BC, and CD Partnerships Merge into the ABCD

question 40

Multiple Choice

The AB, BC, and CD Partnerships merge into the ABCD Partnership. AB (owned by Austin and Ben) contributes assets worth $100,000. BC (owned by Ben and Charlie) contributes assets worth $200,000. CD (owned by Charlie and Dennis) contributes assets worth $300,000. The capital and profits interest in ABCD is owned by: Austin, 10%; Ben, 30%; Charlie, 25%; and Dennis, 35%. ABCD Partnership is a continuation of

• A)AB.
• B)BC.
• C)CD.
• D)none of the partnerships.

---

Definitions:

Education

The process of receiving or giving systematic instruction, especially at a school or university.

Compensation Strategy

The method by which a company determines and allocates rewards and benefits to its employees, ensuring competitive pay and job satisfaction.

Employment Standards Legislation

Laws and regulations that define minimum employment conditions, rights, and protections for workers, such as hours of work, wages, and leave entitlements.

Financial Means

The monetary resources available to an individual, organization, or country.