A,a Partner in a Furniture Business Called a & B

question 38

Multiple Choice

A,a partner in a furniture business called A & B Furniture,causes an accident with the business's delivery truck and injures Alice,who is standing at a bus stop. Assume that in the law suit Alice will be entitled to $1 million in damages.Also assume that A has personal assets of $250 000.00 and B has personal assets of $450 000.00 and that the firm has assets of $1.5 million.In deciding who to sue,Alice will consider that

• A)if Alice sues the firm alone its assets will cover her damages.
• B)if Alice sues A and B only and succeeds,she cannot sue the firm.
• C)if Alice sues A only and succeeds,she cannot sue B or the firm.
• D)if Alice sues B only and succeeds,she cannot sue A or the firm.
• E)all of the above

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Definitions:

Inflation

The frequency at which the overall cost of goods and services elevates, depreciating the purchasing power.

Cost-Of-Living Adjustment

An increase in income or benefits to compensate for a rise in the prices of goods and services, maintaining the purchasing power.

Employment Contract

A formal agreement between an employer and an employee outlining the terms of employment, including responsibilities, compensation, and duration.

Loanable Funds

The money available in the financial system for lending to individuals, businesses, and the government.