Paul Invests $10,000 Cash in an Equipment Leasing Activity for a 15

question 36

Multiple Choice

Paul invests $10,000 cash in an equipment leasing activity for a 15% ownership share in the business.The remaining 85% owner is Amanda.Amanda contributes $10,000 and personally borrows $75,000 that she also invests in the business.What are the at-risk amounts for Paul and Amanda?

• A) Option a
• B) Option b
• C) Option c
• D) Option d

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Definitions:

Equitable Estoppel

A legal principle preventing someone from arguing something contrary to a claim if a previous action or agreement implied that claim.

Written Promise

A documented commitment by one party to perform or refrain from performing certain actions for another party.

Reasonable Amount

An amount that is considered fair, appropriate, and not excessive under the circumstances, often used in legal and financial contexts.

Gratuitous Promise

A pledge or commitment made without the expectation of receiving something in return, not typically enforceable as a contract.