Badger and Fox Are Forming a Partnership

question 26

Multiple Choice

Badger and Fox are forming a partnership. Badger invests a building that has a market value of $350,000; the partnership assumes responsibility for a $125,000 note secured by a mortgage on the property. Fox invests $100,000 in cash and equipment that has a market value of $75,000. For the partnership, the amounts recorded for Badger's Capital account and for Fox's Capital account are:

• A) Badger, Capital $350,000; Fox, Capital $175,000.
• B) Badger, Capital $225,000; Fox, Capital $100,000.
• C) Badger, Capital $225,000; Fox, Capital $75,000.
• D) Badger, Capital $350,000; Fox, Capital $100,000.
• E) Badger, Capital $225,000; Fox, Capital $175,000.

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Definitions:

Assumptive Close

A type of close that assumes the prospect will buy.

Visual Aids

Tools such as charts, diagrams, videos, and models used to enhance understanding, retention, or presentation of information.

Direct Close

An explicit type of closing wherein the salesperson asks the customer for a decision in a straight-forward, candid manner.

Sales Negotiations

The process of discussions between the buyer and seller aimed at reaching a mutually beneficial agreement on terms.