General Widget's Partnership Assets Amount to $34,000 After Liquidation

question 16

Multiple Choice

General Widget's partnership assets amount to $34,000 after liquidation. Frank, Gene, and Hank, equal partners, each contributed $3,000 into the capital pool at the inception of the business. Gene later loaned the business $5,000. The partnership owes $23,000 to creditors for inventory. Under the UPA, what will Gene get in distribution, assuming there is no agreement on the distribution of profits?

• A) $5,000.
• B) $7,000.
• C) $8,000.
• D) $11,000.

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Definitions:

Overtime

Extra hours worked beyond the regular working schedule, often compensated at a higher pay rate.

Production Constraint

A limitation or bottleneck in the production process that restricts output, efficiency, or the utilization of resources.

Profits

The financial gain achieved when the revenues from business operations exceed the expenses, costs, and taxes involved in sustaining the operation.

Opportunity Costs

The value of the best alternative that is foregone when a different option is chosen.