Bart Contributes $100,000 to the Fish Partnership for a 40

question 39

Multiple Choice

Bart contributes $100,000 to the Fish Partnership for a 40% interest. During the first year of operations, Fish has a profit of $20,000. At the end of the first year, Fish has outstanding loans from the following banks.
First Bank (recourse)
$10,000
Second Bank (nonrecourse)
30,000
What is Bart's at-risk basis in Fish at the end of the first year?

• A) $100,000
• B) $108,000
• C) $112,000
• D) $124,000
• E) None of the above

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Definitions:

Directive Leadership

A leadership style characterized by giving direct orders and instructions, with a clear line of authority and control.

External Locus of Control

The belief that one's outcomes in life are determined by external forces or events outside their control, as opposed to being the result of their own actions (internal locus of control).

Path-goal Theory

A leadership theory that emphasizes the leader's role in guiding and motivating followers to achieve set goals by clarifying the path to these goals.

Path-goal Theory

A leadership theory that suggests the leader's job is to assist followers in attaining their goals and to provide the necessary direction and support.