The Partnership Agreement of Alix Gise and Bosco Provides for the Following

question 147

Multiple Choice

The partnership agreement of Alix Gise and Bosco provides for the following income ratio: (a) Alix the managing partner receives a salary allowance of $108000 (b) each partner receives 15% interest on average capital investment and (c) remaining net income or loss is divided equally. The average capital investments for the year were: Alix $600000 Gise $1200000 and Bosco $1800000. If partnership net income is $540000 the amount distributed to Alix should be

• A) $90000.
• B) $162000.
• C) $180000.
• D) $198000.

Grasp the specifics of option contracts, including the standard number of shares involved and where options are traded.

Comprehend investment strategies involving options such as protective puts, covered calls, and bull and bear spreads.

Analyze the factors influencing option pricing, including exercise price, contract maturity, underlying stock performance, and market events.

Identify different types of options (American, European, digital, and barrier) and understand their distinct characteristics.

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Definitions:

Banking System

A network of financial institutions, including banks, that provide financial services to the public and businesses.

Availability Float

The time difference between when a deposit is made in a bank account and when the amount becomes available for use.

Collection Float

The time gap between when a check is deposited into a bank account and when the funds become available.

Opportunity Cost

Opportunity cost refers to the potential benefits an individual, investor, or business misses out on when choosing one alternative over another.