Jim, Rob and Emily Are Partners in a Consulting Business

question 15

Multiple Choice

Jim, Rob and Emily are partners in a consulting business. Jim's initial contribution was $30,000, Rob's was $20,000 and Emily's was $10,000. The partnership also borrows $60,000 from Vancouver Credit Union. The partners agree that profits and losses will be shared in proportion to their capital contributions. The business fails. What is Jim's liability to Vancouver Credit Union?

• A) $60,000
• B) $30,000
• C) $20,000
• D) $10,000
• E) Nothing

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Definitions:

International Transaction

An international transaction refers to a business or financial exchange crossing national borders, involving trades of goods, services, or capital.

Arbitration Agreement

A contract in which two or more parties agree to settle a dispute outside of the court system, typically through the decision of a neutral third party.

Federal Judge

A judge appointed by the president of the United States and confirmed by the Senate, serving within the federal court system.

Arbitration Agreement

A written contract in which two or more parties agree to settle a dispute outside of court through the arbitration process.