Use the Following Account Balance Information for Granobfin Partnership with Income

question 110

Multiple Choice

Use the following account balance information for Granobfin Partnership with income ratios of 2:4:4 for Granger Noble and Finn respectively.
-Assume that as part of liquidation proceedings Granobfin sells its noncash assets for $360000. As a result one of the partners has a capital deficiency which that partner decides not to repay. The amount of cash that would ultimately be distributed to Finn would be

• A) $312000.
• B) $228000.
• C) $144000.
• D) $204000.

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Definitions:

Perfect Competitor

An idealized market scenario where numerous buyers and sellers interact, leading to the best products at the lowest prices due to competition.

Monopolist

An individual or company that is the sole supplier of a particular good or service, allowing them to control the market price.

Maximizing Profits

The process of adjusting production levels and pricing strategies to achieve the highest possible return on investment.

Minimizing Losses

Strategies or actions taken by businesses or investors to reduce financial losses or minimize risks.