Ten Years Ago, Tad and Tori Created a Partnership

question 68

Multiple Choice

Ten years ago, Tad and Tori created a partnership.At that time, Tad contributed $400 000 in property and Tori contributed $600 000 in cash as capital for the partnership.Two years later, Tori provided $300 000 to the partnership as an interest-free loan.That loan has not yet been repaid.During the entire life of the partnership, Tori performed approximately 60 percent of the partnership's work, while Tad tended to devote much of his time to various charitable causes that were unrelated to the partnership.The partnership has now been dissolved.Sale of the partnership assets produced a fund of $1.2 million.It is necessary to spend $200 000 on debts that the partnership still owes to various creditors.Assuming that the parties have not replaced or modified the default rules applicable to their partnership,

• A)Tori will receive an amount equal to her original contribution and repayment of her loan.
• B)Tori will receive an amount that reflects the fact that she performed 60 percent of the partnership's work.
• C)Tad and Tori will receive the same amount.
• D)A judge will consider all of the circumstances and then exercise a discretion to determine how much each party is entitled to receive.
• E)Tori will receive $800 000.

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Definitions:

Social Category Diversity

The presence of diverse social identities within a group, such as differences in race, gender, ethnicity, which can impact group dynamics and outcomes.

Attentional Focus Model

A theoretical framework describing how focusing attention on different aspects of a task can influence performance and learning.

Time Pressure

Time Pressure refers to the stress or urgency to complete tasks or make decisions within a limited timeframe.

Task Specialization

The process of dividing work into specific tasks that are assigned to individuals based on their skills or expertise.