The Summarized Balances of the Accounts of RST Partnership on December

question 5

Multiple Choice

The summarized balances of the accounts of RST partnership on December 31, 2014, are as follows: $\begin{array}{c}\begin{array}{lll}\text{Assest}\\\text { Cash } &\$30,000\\\text { Noncash } &180,000\\\\\\\text { Total Assets }&\$210,000\end{array}\begin{array}{lll}\text {Liabilities and Equity}\\\text {Liabilities}&\$30,000\\\text {R, Capital}&90,000\\\text {S, Capital}&60,000\\\text {T, Capital}&30,000\\\text {Total Lia \& Equities}&\$210,000\end{array}\end{array}$
The agreed upon profit/loss ratio is 50:40:10, respectively.Using the information given above, which one of the following amounts, if any, is the loss absorption potential of partner S as of December 31, 2014?

• A)$60,000
• B)$70,000
• C)$150,000
• D)$240,000

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Definitions:

Personal Selling Process

A face-to-face or direct marketing approach where sales representatives interact personally with customers to facilitate sales.

Preapproach Stage

A preparatory step in the sales process where the salesperson gathers relevant information about a potential customer before making contact.

Buying Role

Describes the activities and responsibilities of individuals or entities involved in purchasing decisions or transactions in various contexts.

Preapproach Stage

The phase in the sales process where research and planning are conducted before making initial contact with a potential customer.