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Laverne and Shirley Started a Partnership

question 104

Multiple Choice

Laverne and Shirley started a partnership.Laverne invested $4,000 in the business and Shirley invested $6,000.The partnership agreement stipulated that profits would be divided as follows.Each partner would receive a 10% return on their invested capital with the remaining income being distributed equally between the two partners.Assuming that the partnership earned $4,500 during an accounting period,the amount of income assigned to the two partners would be: Laverne and Shirley started a partnership.Laverne invested $4,000 in the business and Shirley invested $6,000.The partnership agreement stipulated that profits would be divided as follows.Each partner would receive a 10% return on their invested capital with the remaining income being distributed equally between the two partners.Assuming that the partnership earned $4,500 during an accounting period,the amount of income assigned to the two partners would be:   A)  Choice A B)  Choice B C)  Choice C D)  Choice D


Definitions:

Samurai Bonds

Bonds issued in Japan by foreign entities, denominated in Japanese yen.

Synthetically Created

Created or manufactured using a combination of elements and processes to replicate or improve upon a natural product or financial instrument.

Zero-Coupon Bonds

Bonds that do not pay periodic interest payments and are issued at a deep discount, maturing at face value.

STRIPS

Separate Trading of Registered Interest and Principal Securities, a type of U.S. government security that allows the separate trading of interest and principal components.

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