Fontaine and Monroe Are Forming a Partnership

question 2

Multiple Choice

Fontaine and Monroe are forming a partnership. Fontaine invests a building that has a market value of $250,000; the partnership assumes responsibility for a $75,000 note secured by a mortgage on the property. Monroe invests $100,000 in cash and equipment that has a market value of $55,000. For the partnership, the amounts recorded for Fontaine's Capital account and for Monroe's Capital account are:

• A) Fontaine, Capital $175,000; Monroe, Capital $45,000.
• B) Fontaine, Capital $0; Monroe, Capital $100,000.
• C) Fontaine, Capital $250,000; Monroe, Capital $100,000.
• D) Fontaine, Capital $250,000; Monroe, Capital $155,000.
• E) Fontaine, Capital $175,000; Monroe, Capital $155,000.

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Definitions:

McDonaldization

A term used to describe the increasing presence of fast food business models in various sectors of society, emphasizing efficiency, predictability, calculability, and control.

Neoliberal Globalization

An economic and political ideology focused on free-market policies, deregulation, and increasing the role of the private sector in global affairs.

Neoliberalist

An advocate of neoliberalism, a policy model of social studies emphasizing free-market capitalism, deregulation, and reduction in government spending.

Social Cohesion

The bonds and relationships that bind members of a community or society together, promoting a sense of belonging and mutual support.