Zack Was a Partner in a Management Consulting Firm That

question 51

Multiple Choice

Zack was a partner in a management consulting firm that specialized in assisting small businesses in the area of financial planning. The firm did not perform income tax services. However, since Zack had personal expertise in tax accounting, he frequently assisted friends, as well as some firm clients, in preparing their income tax returns. Usually he borrowed the firm's adding machine and other office supplies to perform this work from his home unbeknownst to his partners. Zack may be required to

• A) retire from the partnership for breach of warranty of authority.
• B) account to the other partners for any money received from his income tax service.
• C) assign his share in the partnership to another to take his place in the partnership.
• D) All of the responses are possible
• E) None of the responses are possible.

Distinguish between exponential and other types of distributions.

Identify the parameter λ in exponential distributions and understand its relation to the mean and variance.

Interpret the exponential distribution's density function.

Compute the mean, median, variance, and standard deviation for exponential distributions.

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Definitions:

Reimbursement

The act of compensating someone for expenses they have incurred.

Agency Coupled With An Interest

An agency relationship that is created for the benefit of the agent, not the principal.

Agency Agreement

A contract where one party (the agent) agrees to act on behalf of another party (the principal) in commercial transactions.

Principal

The amount of money originally invested or loaned, in contrast to interest or profit earned on that amount.