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Kim and Doug Richards Are Making a Gift to the College

question 2

Multiple Choice

Kim and Doug Richards are making a gift to the college they both attended.They met and were married there,as well.They plan to make a $1 million gift,from which they will draw $150,000 of annual income for five years.At the end of the fifth year,the balance of the investment,$500,000,will go to the college.What return does the college need to achieve in order to meet the financial goal of $500,000?

Understand the implications of a partnership agreement and how it governs the operations and relations among partners.

Grasp the mechanisms of profit and loss distribution in a partnership based on the income ratio.

Understand the procedures for the admission of a new partner into an existing partnership and the financial implications thereof.

Comprehend how capital accounts and drawing accounts reflect partners' investments and withdrawals.

Definitions:

Torts

Legal wrongs committed against a person or property, excluding breach of contract, for which a court provides a remedy in the form of an action for damages.

Apparent Authority

The appearance or assumption of authority based on the conduct or statements of the principal, leading third parties to believe an agent has authority to act.

Unidentified Principal

A scenario in contract law where the identity of the principal is unknown to the third party at the time of agreement.

Actual Authority

The express or implied legal power given to an agent by a principal to undertake specific actions on the principal's behalf.