Harry Invests $40,000 for a One-Fourth Interest in a Partnership

question 12

Multiple Choice

Harry invests $40,000 for a one-fourth interest in a partnership in which the other partners have capital totaling $80,000 before admitting Harry. After distribution of the bonus, what is Harry's capital balance?

• A) $10,000
• B) $20,000
• C) $30,000
• D) $40,000

---

Definitions:

Venture Startup

The initial phase in the creation of a new business or enterprise, involving concept development and the launch of operations.

Internally Driven

Motivated by personal values, desires, or goals rather than external pressures.

Self-starters

Individuals who are motivated and able to begin or continue tasks without external prodding or supervision, often highly valued in entrepreneurial and professional settings.

Psychological Motivation

Psychological Motivation refers to the internal processes and desires, such as needs, wants, and goals, that drive individuals to pursue and achieve certain actions or outcomes.