Three Joint Operators Are Involved in a Joint Operation That

question 9

Multiple Choice

Three joint operators are involved in a joint operation that manufactures ships chandlery. At the beginning of the year the joint operation held €50 000 in cash. During the year the joint operation incurred the following expenses: Wages paid €20 000, Overheads accrued €10 000. Additionally creditors amounting to €40 000 were paid and the joint operators contributed €15 000 cash each to the joint operation. The balance of cash held by the joint operation at the end of the year is:

• A) € 5000;
• B) €25 000;
• C) €35 000;
• D) €75 000.

---

Definitions:

Price Ceiling

A price ceiling is a government-imposed limit on how high a price can be charged for a product, service, or resource, usually set below the market equilibrium price to make goods more affordable.

Market Equilibrium

A point in a market where the quantity of goods supplied is equal to the quantity of goods demanded.

Consumer Surplus

The gap between what consumers are ready and able to expend for a good or service and what they actually spend.

Price Ceiling

A legally imposed limit on the price that can be charged for a good or service, typically set below the equilibrium price.