The Partnership Agreement Between Allen and Barry States That Profit

question 63

Multiple Choice

The partnership agreement between Allen and Barry states that profit and loss sharing arrangements will be based on the ratio of the partner's capital balances. Allen and Barry have capital balances of $90 000 and $60 000 respectively at the end of the accounting period. If profit for the period is $48 000, the profit allocations of each of the partners is:

• A) Allen $24 000; Barry $24 000.
• B) Allen $28 800; Barry $19 200.
• C) Allen $30 000; Barry $18 000.
• D) unable to be calculated from the information provided.

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Definitions:

Intrasender Role Conflict

A situation where an individual receives conflicting messages or expectations from the same source.

Intersender Role Conflict

A type of role conflict that occurs when a person receives contradictory or incompatible expectations from two or more individuals.

Interrole Conflict

A situation where an individual faces incompatible demands from different roles they hold simultaneously.

Organizational Norms

The shared expectations and rules that guide the behavior of individuals within an organization.