Which of the Following Is Correct Regarding Matthew's Claim to Additional

question 35

Multiple Choice

Which of the following is correct regarding Matthew's claim to additional compensation based upon the amount of work he was doing?

• A) He is correct.
• B) Based upon equitable principles he may be correct, but only if he can establish that the other partners wrongfully refused to do their share of the work.
• C) He is incorrect.
• D) He is incorrect unless he can establish that he honestly did not know the law in regard to partnerships and did the extra work believing that he would be compensated.
• E) He is incorrect unless he can establish that he did at least 30% more work than any other partner.

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Definitions:

Creditors Or Lenders

Individuals or institutions that lend money or extend credit to others, with the expectation of being repaid with interest.

Revenues

The total amount of money received by a company for goods sold or services provided during a certain period of time.

Equity

The value of an ownership interest in property, including shareholders' equity in a corporation, representing assets minus liabilities.

Net Income

The total profit of a company after all expenses, including taxes, have been deducted from revenue.