Ross,Molly,and Dave Had Opened a Partnership Firm

question 16

Multiple Choice

Ross,Molly,and Dave had opened a partnership firm.Dave mortgaged his interest in the partnership in return for a $10,000 loan from the bank.Under this circumstance,which of the following will hold true as per the Revised Uniform Partnership Act RUPA) ?

• A)It would cause dissolution of partnership.
• B)It would entitle the bank to access the firm's information.
• C)The bank would be entitled to participate in running the firm.
• D)The bank would be entitled to receive whatever profits Dave would have received.
• E)The bank would be entitled to inspect the books of accounts of the partnership firm.

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Definitions:

Acquisition

The act of gaining control over another company or business entity by buying it or merging with it.

Weighted Average Cost

A method of calculating the cost of goods available for sale that considers the cost of goods at varying times and at different purchase costs.

Computation

The process of performing mathematical calculations or processing information to achieve a result.

Debt-equity Ratio

A metric that evaluates the financial leverage of a company, determined by dividing the total amount of its liabilities by its shareholder equity.