A Law Firm Has 3 Partners

question 92

Multiple Choice

A law firm has 3 partners. The first partner owns of the business, the second partner owns of the business and the third partner owns of the business. The business is worth $1.5 million. A new partner is introduced who contributes an additional $300,000 and owns of the total value of the new business. What are the new values for the first to the third original partners?

• A) 1-$476000, 2-$540000, 3-$424000
• B) 1-$526000, 2-$590000, 3-$424000
• C) 1-$576000, 2-$540000, 3-$324000
• D) 1-$576000, 2-$450000, 3-$414000
• E) 1-$576000, 2-$490000, 3-$424000

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Definitions:

Binding Arbitration Clause

A contract provision that requires the parties to resolve disputes through arbitration rather than through the court system.

Fees

Charges levied by a service provider for specific services rendered or to cover certain expenses.

Arbitrator Selection

The process of choosing an impartial third party to resolve a dispute in arbitration, typically agreed upon by all parties involved.

Negotiation

A discussion aimed at reaching an agreement where two or more parties with different needs and goals discuss an issue to find a mutually acceptable solution.