Sennett Invests $40,000 for a 20 Percent Interest in a Partnership

question 85

Multiple Choice

Sennett invests $40,000 for a 20 percent interest in a partnership that has capital totaling $150,000 after admitting Sennett. Which of the following is true?

• A) The original partners received a bonus of $10,000
• B) Sennett received a bonus of $10,000
• C) Sennett's capital is $40,000
• D) The original partners' capital in the business was $120,000 before admitting Sennett

---

Definitions:

Forebrain

refers to the anterior part of the brain, including the cerebral hemispheres, thalamus, and hypothalamus, responsible for complex behaviors and functions.

Memory

The mental capability to encode, store, and retrieve information, ranging from personal experiences to knowledge of facts.

Ablation

The surgical removal of body tissue, or the destruction of the function of a part of the body using chemicals, heat, or other methods.

Wernicke's Aphasia

A neurological disorder characterized by impaired language comprehension and fluent but nonsensical speech, caused by damage to the Wernicke's area in the brain.