Tyran Lobell and Scotti Wand Are Equal General Partners in the Gift

question 5

Multiple Choice

Tyran Lobell and Scotti Wand are equal general partners in The Gift Shop.Tyran contributed 80% ($80,000) of the required funds to start the partnership and Scotti contributed 20% ($20,000) .Scotti carries out 75% of the day to day operations of the business.Which of the following is accurate with respect to the partners' liability exposure?

• A)Scotti is liable for 75% of any claims made.
• B)Tyran is liable for 80% of any claims made.
• C)Any claims against the business will be limited to $100,000.
• D)The partners have equal and unlimited liability in the business.

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Definitions:

Average Variable Cost

The total variable costs divided by the quantity of output produced, showing the variable cost per unit of output.

Economic Loss

A situation where total costs exceed total revenues, resulting in a negative profit for a business.

Short-run Supply Curve

Shows the relationship between the price of a good and the quantity supplied over a short period, when at least one input is fixed.

Minimum Point

The point at which a function reaches its smallest value, often used in the context of costs or optimization problems.