Jim and Rob Are Partners in a Consulting Business

question 7

Multiple Choice

Jim and Rob are partners in a consulting business. Jim's initial contribution was $30,000, Rob's was $20,000. Emily is a limited partner who contributed $10,000. The partnership also borrows $60,000 from Vancouver Credit Union. The partners agree that profits and losses will be shared in proportion to their capital contributions. The business fails. Jim pays the entire $60,000 debt to the Vancouver Credit Union. How much can he collect from Emily?

• A) $60,000
• B) $30,000
• C) $20,000
• D) $10,000
• E) Nothing

---

Definitions:

Saudi Arabia

A country in the Middle East, known for its vast oil reserves, which plays a significant role in global energy markets and politics.

Formal Channels

Official pathways of communication within an organization that are recognized and sanctioned by it.

Authoritative

Being final or conclusive; a position of power where the holder is able to enforce rules or directives.

Policies

Formal guidelines or rules that govern actions and decision-making within an organization.