Cameron and Andrew Each Invested $45 000 in a Partnership

question 11

Multiple Choice

Cameron and Andrew each invested $45 000 in a partnership where they agreed to share profits as Cameron: 30%; Andrew 70% . The partnership business was unsuccessful and now has zero assets. In addition, they are being sued for $100 000 by a supplier for non-payment of invoices. What is the amount for which Andrew could be held personally responsible if the lawsuit is successful? (Ignore any possible legal costs.)

• A) Zero
• B) $45 000
• C) $70 000
• D) $100 000

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Definitions:

Communication Process Model

A theoretical framework describing how information is transmitted and received between communicators, encompassing elements such as sender, message, medium, receiver, and feedback.

Information

refers to data that is organized, structured, and given context in a way that makes it useful and meaningful.

Encoding-Decoding Process

The process in communication where the sender encodes a message into language and the receiver decodes it to understand its meaning.

Communication Channel

The medium through which a message is transmitted from sender to receiver, which can range from verbal and written to electronic methods.