In a Partnership Business, Jack Has an Ownership of 60

question 150

Multiple Choice

In a partnership business, Jack has an ownership of 60% and Teresa has an ownership of 40%. For developing the business, Jack contributed $7,000 and Teresa contributed $3,000 on July 1. Which of the following is true of this scenario?

• A)Either the total contribution of $10,000 or the contribution in the ownership ratio will be recorded.
• B)Only the total contribution of $10,000 will be recorded.
• C)Individual contribution of $7,000 by Jack and $3,000 by Teresa will be recorded.
• D)60% of Jack's contribution and 40% of Teresa's contribution will be recorded.

---

Definitions:

Legal Concept

Fundamental principles that are recognized and enforced by the legal system to regulate conduct.

American Business Culture

A set of norms, values, and practices that characterize the conduct of business in the United States, including communication styles, work ethics, and corporate governance.

Caveat Emptor

A legal principle meaning "let the buyer beware," indicating that the buyer assumes the risk about the quality and condition of the product.

Legal Concept

A legal concept is a principle or idea in the field of law, which forms the basis for rules and actions within legal systems.