In a Partnership Business, George Has an Ownership of 60

question 24

Multiple Choice

In a partnership business, George has an ownership of 60% and Ben has an ownership of 40%. For developing the business, they purchased equipment for $10,000. George contributes a sum of $7,000 and Ben makes a contribution of $3,000 on July 1. Based on the information provided, which of the following is true of the partnership balance sheet?

• A)Both George, Capital and Ben, Capital will increase by $10,000.
• B)George, Capital will increase by $7,000 and Ben, Capital will increase by $3,000.
• C)George, Capital will increase by $10,000 and Ben, Capital will remain unchanged.
• D)George, Capital will increase by $6,000 and Ben, Capital will increase by $4,000.

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Definitions:

Standard Agenda

A method or sequence of topics intended for discussion in meetings or formal gatherings to ensure efficient and effective outcomes.

Decision-making Process

A systematic approach to making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Serious Atmosphere

An environment characterized by gravity, solemnity, or a lack of humor, often pertinent to critical or important situations.

Informal Meeting

A casual gathering or discussion without strict rules, agenda, or structure, often occurring spontaneously or in a relaxed setting.