Fact Pattern 30-1B (Questions B10-B13 Apply)

question 5

Multiple Choice

Fact Pattern 30-1B (Questions B10-B13 apply)
Bryn,Cornell,and Duke are general partners in Equity Lending,a consumer credit,mortgage,and investment firm.Their agreement states that it is a breach of the agreement for any partner to assign his or her interest to a creditor without the consent of the other partners.
-Refer to Fact Pattern 30-1B.Bryn,Cornell,and Duke decide to admit Giselle as a new partner in Equity Lending.Giselle's liability for partnership debts incurred before her admission is

• A)limited to her capital contribution to the firm.
• B)limited to her personal assets.
• C)nothing.
• D)unlimited.

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Definitions:

Market Share

The fraction of a market occupied by an individual company or product, often described by its percentage of aggregate sales in the market.

Herfindahl Index

A measure of market concentration used to determine the amount of competition among firms within an industry.

Market Shares

The share of sales within an industry attributed to a certain company.

Herfindahl Index

An indicator used to measure the size of firms in relation to the industry and an index of market concentration.