Michael,Zoe and Perry Are Partners in the Andover Company

question 75

Multiple Choice

Michael,Zoe and Perry are partners in the Andover Company.Their partnership income sharing agreement provides that Michael and Zoe are to receive salary allowances of $15,000 and $18,000,respectively,and that any remaining income or loss is to be divided equally among all partners.If the company had a loss of $30,000,Zoe's capital account would:

• A)increase by $18,000
• B)increase by $8,000
• C)decrease by $10,000
• D)decrease by $3,000

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Definitions:

Safety Regulations

Rules and standards established to ensure the physical well-being of individuals in various environments.

Downward Communication

The flow of information from higher levels of a hierarchical organization to lower levels, often containing directives, instructions, and information relevant to job performance.

Downward Communication

A form of organizational communication that flows from higher levels of management to subordinate levels.

Grapevine Communication

Informal information exchange among people in an organization, often involving rumors or unsubstantiated facts.