Greg and Todd Form a Partnership and Start a Business

question 109

Multiple Choice

Greg and Todd form a partnership and start a business in which each has a 50 percent share of the profit. After a year, the firm goes bankrupt and has debts of $20,000. Greg has no money, but Todd has $25,000 in the bank. Todd must pay ________ of debt.

• A) $0 because in a partnership each partner must pay the same
• B) $0 because partners in a partnership have limited liability
• C) half, or $10,000
• D) $20,000

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Definitions:

Broken Families

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Drug Addiction

A long-term, recurring condition defined by an uncontrollable desire to find and use drugs, persistent use in spite of detrimental effects, and enduring alterations in brain function.

Differential Illegitimate Opportunity

A theory proposing that access to opportunities for committing crimes varies depending on one's location within the social structure.

Lower Class

A socio-economic classification referring to individuals or groups with limited financial resources and social status.