Use the Following Information to Answer the Question(s) Below

question 4

Multiple Choice

Use the following information to answer the question(s) below.

A summary balance sheet for the Lemon, Mango, and Nobb partnership appears below. Lemon, Mango, and Nobb share profits and losses in a ratio of 2:3:5, respectively.
The partners agree to admit Oran for a one-fifth interest. The fair market value of partnership land is appraised at $200,000 and the fair market value of inventory is $175,000. The assets are to be revalued prior to the admission of Oran and there is $30,000 of goodwill that attaches to the old partnership.

-What will the profit and loss sharing ratios be after Oran's investment?

• A)1:2:4:2
• B)2:3:5:2
• C)3:4:6:2
• D)4:6:10:5

Appreciate the importance of considering alternatives and consequences in decision making.

Examine corporate governance principles and the role of corporate responsibility.

Discern the difference between shareholder theory and utilitarianism and their implications for ethical business practices.

Understand the role of whistleblowing and its implications on a company’s reputation and ethical stance.

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Definitions:

Same-Sex Partners

Relationships between two individuals of the same gender, recognized in various forms across cultures and legal systems.

Opposite-Sex Partners

Individuals of the opposite biological gender with whom one has a romantic or sexual relationship.

Household Tasks

Chores or duties that are regularly undertaken to maintain the functioning and cleanliness of a domicile, such as cleaning, cooking, and laundry.

Marital Satisfaction

The degree of contentment and happiness experienced by individuals within their marriage or marital relationship.