Web Services Is Organized as a Limited Partnership, with David

question 73

Multiple Choice

Web Services is organized as a limited partnership, with David White as one of its partners. David's capital account began the year with a balance of $45,000. During the year, David's share of the partnership income was $7,500, and David received $4,000 in distributions from the partnership. What is David's partner return on equity?

• A) 7.8%
• B) 8.9%
• C) 15.4%
• D) 16.0%
• E) 16.7%

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Definitions:

Sampling Error

The discrepancy between a statistical measurement based on a sample and the actual population parameter.

Proportion

A part or fraction of a whole, often expressed as a percentage or ratio, reflecting the relative size or quantity of one quantity compared to another.

Population Proportions

Population proportions represent the fraction or percentage of members in a population that possess a particular attribute.

Confidence Level

The degree of certainty or probability with which one can expect a result to fall within a specified range.