When an Additional Partner Is Admitted to a Partnership by Contribution

question 89

Multiple Choice

When an additional partner is admitted to a partnership by contribution of assets to the partnership,

• A) the total assets of the partnership do not change
• B) no liabilities can be contributed at the same time
• C) the amount of the cash contribution is the same as the amount of the debit to the new partner's capital account
• D) the total of the owners' equity accounts increases

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Definitions:

Demand for Labor

the quantity of workers that employers are willing and able to hire at a given wage rate in a given time period.

Supply of Labor

The total hours that workers are willing and able to work at a given wage rate, over a certain time frame.

Supply of Capital

The total resources, financial and otherwise, available for investment in production.

Dual Labor Market

describes an economy divided into two segments: a primary sector with secure, well-paid jobs, and a secondary sector with insecure, poorly paid jobs.