Fay Is Admitted to Global Associates, an Existing Partnership

question 49

Multiple Choice

Fay is admitted to Global Associates, an existing partnership. A partnership debt incurred before the date of her admission comes due. Fay is

• A) not liable for the debt.
• B) only liable for the debt up to the amount of his capital contribution.
• C) personally liable only to the extent the other partners do not pay.
• D) personally liable to the full extent of the debt.

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Definitions:

Weighted Mean

An average where each data point contributes proportionally to the total based on its assigned weight, reflecting its importance.

Median

A measure of central tendency that identifies the middle value in a dataset when the numbers are arranged in ascending or descending order.

Central Tendency

A measure that represents the center point or typical value of a dataset.

Average

A statistical measure that determines the central tendency of a set of numbers by dividing the sum of all numbers by the count of the numbers.