Ross,Molly,and Dave Had Opened a Partnership Firm

question 16

Multiple Choice

Ross,Molly,and Dave had opened a partnership firm.Dave mortgaged his interest in the partnership in return for a $10,000 loan from the bank.Under this circumstance,which of the following will hold true as per the Revised Uniform Partnership Act RUPA) ?

• A)It would cause dissolution of partnership.
• B)It would entitle the bank to access the firm's information.
• C)The bank would be entitled to participate in running the firm.
• D)The bank would be entitled to receive whatever profits Dave would have received.
• E)The bank would be entitled to inspect the books of accounts of the partnership firm.

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Definitions:

Sellers

Individuals or entities that offer goods or services for sale in a market.

Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and products that are similar enough to be considered substitutes.

Monopsony

A market condition in which there is only one buyer, giving that buyer considerable control over the price of goods and services.

Marginal Value Curve

A graphical representation that shows how the marginal value of a good or service changes as its quantity changes.