Fact Pattern 27-3 ​Bryn, Cornell, and Duke Are General Partners in Equity Lending

question 7

Multiple Choice

Fact Pattern 27-3
​Bryn, Cornell, and Duke are general 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 27-3. The partners decide to dissolve Equity Lending. Duke collects and distributes the firm's assets. This results in

• A) ​nothing with respect to the firm's existence.
• B) ​the continuation of the firm's business.
• C) ​the termination of the firm's legal existence.
• D) ​the temporary suspension of the firm's business.

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Definitions:

Market Share

Market share is the portion of a market controlled by a particular company, measured in terms of sales revenue or unit sales compared to the total market.

Kinked-demand Curve Model

An economic theory that suggests that prices in an oligopolistic market will remain stable because businesses will match price cuts but not price increases by competitors.

Oligopoly

A business environment where only a few enterprises have strong dominance in controlling market prices and the competitive landscape.

Marginal Cost

The monetary cost of fabricating one more unit of a product or service.