Gary and Felix Are Partners of a General Partnership

question 77

Multiple Choice

Gary and Felix are partners of a general partnership.Gary does two-thirds of the partnership work,while Felix does one-third of the work.Last year the partnership earned $300,000 in profits.Under the RUPA,how much of the $300,000 is Felix entitled to receive?

• A)$200,000
• B)$150,000
• C)$100,000
• D)$250,000

---

Definitions:

Paid-in Capital

Funds received by a company from selling its stock directly to investors, not including any stock sales on the open market.

Common Stock

A type of security that represents ownership in a corporation, entitling the holder to vote at shareholders' meetings and receive dividends.

No-par Common Stock

Shares issued without a par value, allowing the company more flexibility in setting their price.

Paid-in Capital

The total amount of capital that shareholders have contributed to a company in exchange for shares of stock.