Cleary, Wasser, and Nolan Formed a Partnership on January 1

question 49

Multiple Choice

Cleary, Wasser, and Nolan formed a partnership on January 1, 2010, with investments of $100,000, $150,000, and $200,000, respectively. For division of income, they agreed to (1) interest of 10% of the beginning capital balance each year, (2) annual compensation of $10,000 to Wasser, and (3) sharing the remainder of the income or loss in a ratio of 20% for Cleary, and 40% each for Wasser and Nolan. Net income was $150,000 in 2010 and $180,000 in 2011. Each partner withdrew $1,000 for personal use every month during 2010 and 2011.
-What was Cleary's capital account balance at the end of 2011?

• A) $163,420.
• B) $151,420.
• C) $139,420.
• D) $100,000.
• E) $142,000.

Identify the conditions under which firms will expand or decrease their employment of labor.

Understand the impact of international trade on domestic labor demand.

Recognize the factors that cause shifts in a firm’s demand curve for labor.

Explain the importance of the cost of labor and other inputs in decision-making processes of firms.