Hay,Straw and Clover Formed the HSC Partnership,agreeing to Share Profits

question 20

Multiple Choice

Hay,Straw and Clover formed the HSC Partnership,agreeing to share profits and losses equally.Clover will manage the business for which he will receive a guaranteed payment of $30,000 per year.Cash receipts and disbursements for the year were as follows What is Clover's share of the partnership's ordinary income and guaranteed payment?

• A)Ordinary income,$30,000; Guaranteed payment,$10,000.
• B)Ordinary income,$20,000; Guaranteed payment,$10,000.
• C)Ordinary income,$30,000; Guaranteed payment,$30,000.
• D)Ordinary income,$20,000; Guaranteed payment,$30,000.

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Definitions:

Sociology

The study of society, social institutions, and social relationships, analyzing the structure of societies and how individuals interact within these contexts.

Social Theory

Frameworks used to study and interpret social phenomena, focusing on patterns of social relationships, interaction, and culture.

Commodity Consumption

The process of purchasing and using goods and services that are available in the market.

Production

The process of creating goods and services through the combinatioN. of human labor, materials, and technology.