Juan Invests $120,000 for a One-Fifth Interest in a Partnership

question 145

Multiple Choice

Juan invests $120,000 for a one-fifth interest in a partnership in which the other partners have capital totaling $240,000 before admitting Juan.After distribution of the bonus,Juan's capital is

• A)$120,000
• B)$72,000
• C)$96,000
• D)$48,000

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Definitions:

Antitrust Laws

Regulations established to encourage competition by limiting monopolies, price fixing, and other practices detrimental to free market economics.

Herfindahl Index

The Herfindahl Index is a measure of market concentration, calculated by summing the squares of the market shares of all firms in the industry.

Clayton Act

A U.S. antitrust law passed in 1914, aimed at promoting competition and preventing monopolies by prohibiting certain actions that could lead to anti-competitive practices.

Antitrust Authorities

Governmental bodies responsible for enforcing laws that promote competition and regulate against monopolistic and unfair business practices.