Becca Franklin and Suzanne Peterson Formed an LLC as Co-Owners

question 15

Multiple Choice

Becca Franklin and Suzanne Peterson formed an LLC as co-owners and managers.The LLC made $275,000 after expenses last year.There are no provisions in their operating agreement on how profits are to be split.​
-Becca Franklin and Suzanne Peterson have formed a general partnership.The partnership,BFSP Dental,sells used dental equipment.Tragically,Suzanne is killed in an auto accident.At the time of the accident,BFSP has two dental chairs ($50,000 each) and four high-powered drills ($30,000 each) .What happens to the partnership as a result of Suzanne's death?​

• A)​Becca has the right to continue the partnership.
• B)​The partnership is dissolved.
• C)There is right of survivorship in general partnerships, so Becca owns the business in full.
• D)The partnership will need to go through a reorganization.

Recognize the challenges associated with private market provision of public goods and common resources.

Evaluate the impact of overuse and underuse of common resources on social welfare.

Apply principles of social welfare maximization to real-world scenarios involving public goods and common resources.

Understand the concept of externalities and how they affect social cost and social benefit.