Smith, West, and Krug Form a Partnership

question 33

Multiple Choice

Smith, West, and Krug form a partnership. Smith contributes $180,000, West contributes $150,000, and Krug contributes $270,000. Their partnership agreement calls for a 5% interest allowance on the partner's capital balances with the remaining income or loss to be allocated equally. If the partnership reports income of $174,000 for its first year, what amount of income is credited to West's capital account?

• A) $58,000.
• B) $57,000.
• C) $61,500.
• D) $55,500.
• E) $48,000.

Know the incentives used by manufacturers to encourage the movement of products through the channel.

Comprehend the hierarchy of effects model and its stages in consumer behavior.

Understand the phases of the promotion decision process and the importance of identifying the target audience.

Understand the hierarchy of effects model in marketing communication.

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Definitions:

Level of Inventory

The quantity of goods, materials, and products held in stock by a business at a specific point in time.

Disposable Income

Post-income tax financial means available to households for saving and spending.

Control

in the context of management and business, refers to the process of regulating activities and verifying that everything is proceeding according to plan, to ensure the achievement of goals.

Disposable Income

Earnings left after subtracting taxes and social security contributions, which can be either saved or spent according to one's preferences.