Michael and Brian Each Invested $65 000 in a Partnership

question 7

Multiple Choice

Michael and Brian each invested $65 000 in a partnership where they agreed to share profits 40% Michael, 60% Brian. The partnership business was not successful and now has no assets. In addition they are being sued for $70 000 by a supplier for non- payment of invoices. What is the amount for which Michael could be held personally responsible if the lawsuit is successful? (Ignore any possible legal costs.)

• A) Zero
• B) $28 000
• C) $65 000
• D) $75 000

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Definitions:

Equal Payments

Regular payments of the same amount over a specified period, often associated with loans or mortgages.

Time Intervals

Defined periods or durations that are used for scheduling, analysis, or measurement purposes within various contexts, such as financial planning or project management.

Annuity

An annuity is a financial product that pays out a fixed stream of payments to an individual, typically used as a retirement strategy to provide steady income.

Equal Payments

Regular payments of the same amount over the course of a loan's term or fixed investment period, often associated with mortgages or annuities.