Small Corp

question 3

Multiple Choice

Small Corp. and Big Corp. are equal partners in Medium Enterprises. The total partnership has a net worth of $210,000, split 50/50 between the two corporations. Size Co. has been asked to join the partnership. When the transaction is complete, all three partners will have an equal interest. To accomplish this structural change, Size Co. will contribute $105,000 to the partnership treasury. This transaction will

• A) increase the original partners' interests.
• B) dilute the original partners' interests.
• C) result in a capital gain for the partners.
• D) result in a capital loss for the partners.

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Definitions:

Wrongful Discharge

Wrongful discharge occurs when an employee is illegally terminated from their job, such as in violation of anti-discrimination laws or contractual agreements.

Jury Duty

A civic obligation requiring citizens to serve on a jury when called upon, contributing to the judicial process by determining facts in legal cases.

Protected Activity

Activities that are legally safeguarded against retaliation or discrimination by an employer, often related to whistleblower actions or asserting rights.

Form I-9

A United States Citizenship and Immigration Services form used by employers to verify an employee's identity and eligibility to work in the U.S.