The Capital Account Balances for Donald & Hanes LLP on January

question 59

Multiple Choice

The capital account balances for Donald & Hanes LLP on January 1, 2013, were as follows: Donald and Hanes shared net income and losses in the ratio of 3:2, respectively. The partners agreed to admit May to the partnership with a 35% interest in partnership capital and net income. May invested $100,000 cash, and no goodwill was recognized.
What is the new total balance of the partnership accounts?

• A) $84,000.
• B) $140,000.
• C) $176,000.
• D) $200,000.
• E) $400,000.

Identify the characteristics and differences between mechanistic and organic bureaucracies.

Recognize the various ways organizations can be structured, including by function, product, territory, process, or customer.

Explain the concept of centralization and decentralization in decision-making within organizations.

Understand the significance of formalization in an organization, including rules, policies, and procedures.

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Definitions:

Warranty of Authority

A representation that a person who purports to act on behalf of another (an agent) has the necessary authority to do so.

Bankruptcy

A legal process for individuals or businesses that are unable to repay their outstanding debts, allowing for the distribution of assets to creditors, potentially leading to the discharge of remaining debts.

Agency Termination

The process of ending the relationship between an agent and their principal, which can occur for various reasons such as fulfillment of the agency purpose or mutual agreement.

Principal and Third Party

Legal terms describing the major participant in a transaction (principal) and an outsider who has a lesser role (third party).