Peter, Kathy, and Soren Are Partners in a Hardware Store

question 1

Multiple Choice

Peter, Kathy, and Soren are partners in a hardware store business.Peter wants to retire and have his son, Mac, assume his place in the partnership.Which of the following is TRUE?

• A)Peter cannot make Mac a partner because unanimous consent is required to admit a new partner.
• B)Peter can make Mac a partner by obtaining the consent of one of the other partners.
• C)Peter can make Mac a partner because every partner is entitled to choose their successor.
• D)Peter cannot make Mac a partner unless he has first worked in the partnership business.
• E)Peter can make Mac a partner because partnership interests can be assigned.

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Definitions:

Average Total Costs

The total costs of production divided by the quantity produced, representing the cost per unit of output.

Average Variable Costs

Represent the total variable costs (costs that change with production volume) divided by the number of units produced.

Average Variable Cost

The variable cost per unit of output, calculated by dividing total variable costs by the quantity of output produced.

Output

The quantity of goods or services produced in a given time period by a firm, industry, or country.