Allison and Josh Are Partners in a Business

question 123

Multiple Choice

Allison and Josh are partners in a business. Allison's capital is $60,000 and Josh's capital is $100,000. Profits for the year are $80,000. They agree to share profits and losses as follows: Allison's share of the profits before paying salaries and interest on capital is:

• A)$48,000.
• B)$22,000.
• C)$28,000.
• D)$28,400.

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Definitions:

Communism

A political and economic ideology proposing common ownership of the means of production and the absence of social classes, money, and the state.

Nuclear Annihilation

The complete destruction or obliteration of an area, population, or country through the use of nuclear weapons, a global threat especially during the Cold War era.

U.S.-Soviet Relations

The diplomatic and political relationship between the United States and the Soviet Union during the 20th century, notably characterized by the Cold War.

Korean War

A conflict between North Korea (with support from China and the Soviet Union) and South Korea (with support from the United Nations, primarily the United States), lasting from 1950 to 1953 and resulting in a separation along the 38th parallel.