Once a Partnership Is Dissolved, Assets Are Distributed

question 16

Multiple Choice

Once a partnership is dissolved, assets are distributed:

• A) according to partnership deed.
• B) according to the capital contribution.
• C) according to liabilities incurred.
• D) according to the profit contributions of each partner.

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Definitions:

Marginal Product of Labor

This refers to the additional output a firm gains from hiring one more unit of labor, holding all other factors constant.

Surplus

Surplus refers to the situation where the quantity of a product or service supplied in a market exceeds the quantity demanded at the current price.

Compensating Differentials

Wage differentials that compensate workers for the job attributes, such as difficulty or undesirable conditions.

Salary

Regular payment from an employer to an employee, typically expressed on an annual basis but paid monthly or biweekly.