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Jim and Rob Are Partners in a Consulting Business

question 7

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Jim and Rob are partners in a consulting business. Jim's initial contribution was $30,000, Rob's was $20,000. Emily is a limited partner who contributed $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. Jim pays the entire $60,000 debt to the Vancouver Credit Union. How much can he collect from Emily?


Definitions:

Ratio

A relationship between two numbers indicating how many times the first number contains or is contained within the second.

Ratio

The quantitative relation between two amounts, showing the number of times one value contains or is contained within the other.

Equivalent Ratio

A ratio that has the same value when compared to another ratio, despite possibly having different terms.

Ratio

A relationship between two quantities expressed as the quotient of one divided by the other.

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