David,Richard,and Anthony Are Partners in a Law Firm Under a Typical

question 19

Multiple Choice

David,Richard,and Anthony are partners in a law firm under a typical partnership agreement in which each owns an equal share of the business.Richard dies suddenly of a heart attack.What will most likely become of the partnership?

• A) It will immediately cease to exist and David and Anthony will have to find new jobs.
• B) Richard's share of the business will automatically be split between David and Anthony.
• C) David and Anthony will be able to purchase Richard's interest from his estate.
• D) David and Anthony will have to quickly find a new partner to take Richard's place.
• E) It will dissolve,and David and Anthony will lose personal property to pay business debts.

---

Definitions:

Domestic Macroeconomic Adjustments

Changes made within a country's economy to address macroeconomic issues such as inflation, unemployment, and economic growth.

Foreign-exchange Reserves

Assets held by a central bank in foreign currencies, which are used to back liabilities on their own issued currency as well as to influence monetary policy.

Pegged Exchange Rate

A currency system where a country's currency value is fixed or linked to another currency or a basket of currencies.