Brian, Kirk, and Jim Established a Partnership with Equal Capital

question 15

Multiple Choice

Brian, Kirk, and Jim established a partnership with equal capital contributions. However, Kirk provided an additional contribution in the form of a loan to the company. Which of the following is true?

• A)Brian can withdraw capital advances from the partnership.
• B)Any of the partners can withdraw their capital contribution or advances at any time.
• C)Kirk can withdraw his capital advance after its due date.
• D)Jim can withdraw capital advances from the partnership. ​

Learn about the role of dividends and retained earnings within a corporation.

Comprehend the legal and financial separation between a corporation and its stockholders.

Understand how corporate shares influence the rights and responsibilities of stockholders.

Understand the effects of removing price floors and ceilings on market conditions.

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Definitions:

Externalities

Costs or benefits that affect parties who did not choose to incur that cost or benefit.

Produced

Refers to goods or services that have been created as a result of a manufacturing or production process.

Coase Theorem

An economic theory proposing that under conditions of no transaction costs, parties can negotiate and arrive at efficient resource allocation and solution to externalities regardless of initial property rights allocation.

Number Of People

A quantitative measure of the people involved or affected in a particular context.