A Firm Has Two Partners: Jim and Bill

question 77

Multiple Choice

A firm has two partners: Jim and Bill.Jim owns 60% of the partnership and Bill owns 40%.In which of the following transactions will the partnership be held responsible for an individual partners' actions?

• A) Jim signs a contract as a guarantor for Bill's personal loan.
• B) Jim buys a laptop on credit for personal use.
• C) Bill signs a contract to buy furniture for official use in the partnership.
• D) Bill defaults on payment of his personal credit card bill.

Comprehend different managerial accounting tools that aid in decision-making.

Understand the concepts of planning and continuous improvement in management.

Identify how managerial accounting information supports strategic marketing decisions.

Acknowledge the principles of customer orientation in marketing management.

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Definitions:

Current Assets

Short-term assets that are expected to be converted into cash, sold, or consumed within a year or within the normal operating cycle of a business.

Land and Building

Real estate assets including both the physical ground (land) and any structures (buildings) that are permanently attached to it.

Sales

The activities involved in selling goods or services in return for money or other compensation.

Net Income

The amount of money that remains after all operating expenses, taxes, and interest have been deducted from total revenue.