A Local Partnership Was in the Process of Liquidating and Reported

question 65

Multiple Choice

A local partnership was in the process of liquidating and reported the following capital balances: Douglass indicated that the $14,000 deficit would be covered by a forthcoming contribution. However, the two remaining partners asked to receive the $31,000 that was then in the cash account.
How much of this money should Zobart receive?

• A) $15,467.
• B) $14,467.
• C) $17,333.
• D) $15,633.
• E) $15,867.

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Definitions:

Constant-Sum Game

A situation in decision theory where the total payoff to all players remains constant regardless of the strategies employed, implying that any gain by one party directly corresponds to a loss by another.

Distributive Bargaining

A negotiation strategy in which parties compete over the distribution of a fixed asset or resource, often resulting in a win-lose situation.

Zero-Sum

A situation in game theory and economic theory where each participant's gain or loss is exactly balanced by the losses or gains of the other participants.

Constant-Sum

A scenario in negotiations or games where the total value distributed among participants is fixed, meaning one party's gain is another's loss.