In Liquidation Balances Prior to the Distribution of Cash to the Partners

question 98

Multiple Choice

In liquidation balances prior to the distribution of cash to the partners are: Cash $900000; Peterson Capital $420000; Laney Capital $390000 and Howell Capital $90000. The income ratio is 6:2:2 respectively. How much cash should be distributed to Peterson?

• A) $375000
• B) $408750
• C) $420000
• D) $450000

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Definitions:

Resistance Point

The resistance point is the threshold in negotiations beyond which a party will not go; it represents the worst acceptable outcome.

Opening Bid

The initial proposal or offer made by one party to another at the beginning of a negotiation process.

Types of Goals

Various categories or classifications of objectives that individuals or organizations strive to achieve.

Ideal Negotiation Process

An optimal sequence of discussion and adjustment among parties seeking to reach a universally satisfactory agreement.