If Two Sisters, Simone and Claire, Were Setting Up a Partnership

question 52

Multiple Choice

If two sisters, Simone and Claire, were setting up a partnership to provide French lessons, which of the following arrangements would require a change to the default rules under partnership law?

• A) Simone and Claire each want to receive 50 percent of the profits from the business.
• B) Simone and Claire would each contribute the same amount to the partnership initially.
• C) Either sister can make management decisions for the partnership business independent of the other.
• D) If one of the sisters had to pay out 100 percent of a business obligation, the other would reimburse her for 50 percent of the cost.
• E) The sisters plan to buy a car which will be used only in the partnership business.

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Definitions:

Bobo Doll Study

A series of experiments conducted by Albert Bandura that demonstrated that children could learn aggressive behaviors through observation.

Observational Learning

The process of acquiring information by observing others, rather than through direct experience or instruction.

Behaviorism

A theory in psychology that suggests behavior can be explained through observable actions without the need for internal mental states.

Cognitive Processes

Refers to all mental activities associated with thinking, knowing, remembering, and communicating.