Greg and Todd Form a Partnership and Start a Business

question 109

Multiple Choice

Greg and Todd form a partnership and start a business in which each has a 50 percent share of the profit. After a year, the firm goes bankrupt and has debts of $20,000. Greg has no money, but Todd has $25,000 in the bank. Todd must pay ________ of debt.

• A) $0 because in a partnership each partner must pay the same
• B) $0 because partners in a partnership have limited liability
• C) half, or $10,000
• D) $20,000

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Definitions:

Mean Amount

The average value calculated by summing all amounts in a dataset and dividing by the number of observations.

Mean Amount

The arithmetic average of a set of numbers, calculated by adding all the numbers and dividing by the total number of values.

Commute Time

The duration it takes for an individual to travel from their home to their place of work or study.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values; a low standard deviation indicates that the values tend to be close to the mean.