The Allen, Bevell, and Carter Partnership Began the Process of Liquidation

question 37

Multiple Choice

The Allen, Bevell, and Carter partnership began the process of liquidation with the following balance sheet: Allen, Bevell, and Carter share profits and losses in a ratio of 3:2:5. Liquidation expenses are expected to be $14,000.Assuming that the noncash assets were sold for $150,000, which partner(s) would have been required to contribute assets to the partnership to cover a deficit in his or her capital account, prior to considering the liquidation expenses incurred?

• A) Allen.
• B) Bevell.
• C) Carter.
• D) Allen and Carter.
• E) Allen and Bevell.

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Definitions:

Discrimination Law

The body of law that prohibits unfair treatment of individuals based on certain protected characteristics such as race, gender, age, and disability.

Apparent Agency

A legal concept where a principal is liable for the acts of an agent who appears to be acting within the scope of authority, irrespective of whether the principal actually granted such authority.

Express Agency

An agency relationship created by explicit instruction or agreement, where the agent is authorized to act on behalf of the principal.

Implied Agency

A type of agency relationship created by the actions of the parties involved, not by written agreement, where an agent is presumed to have authority to act on behalf of another.