Anne and Mike Were Winding Up Their Partnership

question 26

Multiple Choice

Anne and Mike were winding up their partnership.Mike was approached by a person who wanted the partnership to do some work for him.Mike agreed that the partnership would do the work.Generally speaking,in such a situation

• A)Anne is not liable since the partnership was in the winding up phase.
• B)Anne is not liable since she did not consent to the work.
• C)Anne is not liable since Mike's conduct was wrongful.
• D)Anne is liable unless she filed a statement of dissolution with the Secretary of State within 90 days of when Mike entered the contract.

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Definitions:

Factory Overhead

Every manufacturing-related expense excluding the costs of direct materials and direct labor.

Direct Materials

Raw materials that are directly used in the production of goods, identifiable as part of the finished product.

Factory Supervisor

An individual responsible for overseeing the operations and workers in a manufacturing plant or a section thereof.

Indirect Cost

Costs that are not directly traceable to a specific project, product, or activity and usually include overheads such as administration and utilities.