David,Chris and John Started Off a Partnership Firm on 31

question 69

Multiple Choice

David,Chris and John started off a partnership firm on 31 July 2017.They decided to share profits equally,but also inserted a clause in the partnership agreement whereby any loss suffered would be borne in the ratio 4:4:1.For the year ended 31 December 2017,the firm earned a net profit of $41,000.However,for the year ended 31 December 2018,the firm incurred a loss of $61,000.Assuming that John had an initial capital contribution of $43,000 and made no further withdrawals,what is the balance of John's Capital account as of 31 December 2018? (Assume that none of the partners made any further contributions to their capital accounts. )

• A)$56,667
• B)$43,000
• C)$36,111
• D)$49,889

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Definitions:

Bounded Rationality

The concept that decision-making is limited by the information available, the cognitive limitations of the mind, and the time available to make the decision.

Alternative Solutions

Different strategies or approaches that can be used to solve a problem or achieve a goal.

Bounded Rationality

The concept that individuals make decisions based on the limited information they have, their own cognitive limitations, and the finite time they have to make a decision.

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions to achieve a goal.