Betsy Ross and Delia Smart Were the Only Partners in a New

question 63

Multiple Choice

Betsy Ross and Delia Smart were the only partners in a new business. Betsy contributed $100,000 to the business and Delia contributed $50,000. No thought was given as to how profits were to be divided. At the end of the first year the business made $30,000 profit, and Betsy had done 50% more work than Delia. How will the profits be shared?

• A)As there was no express agreement, the Partnership Act will apply to establish the split.
• B)The split will be according to their respective contribution of capital, so Betsy will get $20,000 and Delia $10,000.
• C)The split will be according to their respective contribution of labour, so Betsy will get $18,000and Delia $12,000
• D)The split will be equal
• E)Both A and D

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Definitions:

Facial Expression

The visual communication of emotion, intention, or social information through movements or positions of the muscles beneath the skin of the face.

Schachter And Singer

Psychologists known for their development of the two-factor theory of emotion, emphasizing the role of cognitive labels in the experience of emotion.

Emotion-Arousing Situation

Any event or circumstance that triggers an emotional response in individuals.

Facial Expression

Movements of the facial muscles that communicate emotions or reactions and are a significant aspect of non-verbal communication.