During the Current Year,Chris,Casey,and Steve,who Are Partners in the CCS

question 46

Multiple Choice

During the current year,Chris,Casey,and Steve,who are partners in the CCS Company,had average capital balances of $39,000,$43,000,and $55,000,respectively.The partners share profits and losses by allowing a 12% return on average capital,with any remaining income or loss divided in a ratio of 7:5:3.If the company's income was $8,940,Casey's capital account would:

• A)increase by $2,980
• B)decrease by $2,806
• C)increase by $2,660
• D)decrease by $2,500

---

Definitions:

Franchise Fee

An upfront payment made by a franchisee to a franchisor for the rights to use the franchisor's brand and business model.

Shirking

The act of avoiding work or responsibilities, often covertly, within an employment context.

Franchising

A business model allowing individuals or entities to operate a business under the name and system of an established brand in exchange for a fee and ongoing royalties.

Franchisee

An individual or business entity that purchases the right to operate a branch of a franchise using the franchisor’s trademarks, systems, and business model.