Fresco and Garcia Form a Partnership-HVAC Pros

question 71

Essay

Fresco and Garcia form a partnership-HVAC Pros. Garcia's capital contribution is $10,000, and Fresco's is $15,000. The partnership agreement provides that profits are to be shared, with 40 percent for Garcia and 60 percent for Fresco. Later, Garcia makes a $10,000 loan to the partnership when it needs working capital. When the partnership is dissolved, its assets are $50,000, and its debts are $8,000. How should the assets be distributed?

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Definitions:

Motivation

The driving force behind individuals' actions, desires, and needs, influencing their behavior and goal achievement.

Contingency Workers

are individuals employed on a temporary basis to meet the flexible staffing needs of companies.

Benefits Packages

A collection of non-wage compensations, such as health insurance and retirement plans, offered to employees by employers.

Core Job Characteristics

Fundamental elements of a job that affect an employee's motivation and job satisfaction, such as task variety, autonomy, and feedback.