Jack and Jill Form a Partnership

question 168

Multiple Choice

Jack and Jill form a partnership.Jack runs the business in New York, while Jill vacations in Hawaii.During the time Jill is away from the business, Jack increases the debts of the business by $20,000.Which of the following statements is true regarding this debt?

• A)Only Jack is personally liable for the debt, since he has been the managing partner during that time.
• B)Only Jill is personally liable for the debt of the business, since Jack has been working and she has not.
• C)Both Jack and Jill are personally liable for the business debt.
• D)Neither Jack nor Jill is personally liable for the business debt, since the partnership is a separate legal entity.

Describe how consumer and producer surpluses are affected by government interventions in markets.

Recognize the role of government interventions, such as licenses and medallions, in regulating markets.

Evaluate the consequences of government-imposed quantity controls on market efficiency and surplus.

Explain the concepts of demand price, supply price, and how they determine market equilibrium.

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Definitions:

Jurisdiction

The official power to make legal decisions and judgments, typically a geographic area or over certain types of legal cases.

Advantages

The positive, beneficial aspects or factors contributing to success, efficiency, or achievement of goals.

Obligations and Duties

Requirements or demands made legally or morally upon a person, which are necessary to fulfill a contract or role.

Directors

Individuals appointed to supervise and guide the affairs and strategic direction of a corporation or organization.