Sarah and Jane Formed a Partnership with Capital of $210,000

question 67

Multiple Choice

Sarah and Jane formed a partnership with capital of $210,000 and $126,000, respectively. Peter contributed $84,000 to acquire an ownership interest of 14% in the new partnership. How much is the total bonus for the existing partners?

• A)$84,000
• B)$25,200
• C)$58,800
• D)$12,600

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Definitions:

Family Businesses

Family businesses are owned and controlled by family members.

Succession Plans

Defined strategies or processes for identifying and developing new leaders who can replace old leaders when they leave, retire, or pass away.

First-mover Advantage

The benefit gained by the initial significant occupant of a market segment, often allowing for the establishment of strong brand recognition and customer loyalty.

Niche Manipulation

Niche manipulation refers to the strategic actions taken by organizations or individuals to shape or adapt their specific segment of the market to gain a competitive advantage.