Fact Pattern 18-1 Bryn, Cornell, and Duke Are Partners in Equity Lending, a Equity

question 56

Multiple Choice

Fact Pattern 18-1
Bryn, Cornell, and Duke are partners in Equity Lending, a consumer credit, mortgage, and investment firm. Their agreement states that it is a breach of the agreement for any partner to assign his or her interest to a creditor without the consent of the other partners.
-Refer to Fact Pattern 18-1. Cornell's assignment of his interest in Equity Lending to Financial Consultants Corporation results in​

• A) ​nothing with respect to Cornell or Equity Lending.
• B) ​the automatic termination of Equity Lending's legal existence.
• C) ​Cornell's liability for all of Equity Lending's debts.
• D) ​Cornell's wrongful dissociation and liability for any damages.

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Definitions:

Short Run

A time period in economics where at least one factor of production is fixed, limiting the immediate response of a firm to changes in market conditions.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales.

Average Variable Cost

The total variable cost divided by the quantity of output produced.

Output

The amount of goods or services produced by a company, sector, or economy.