Jones Is a Partner in a Law Firm in a Small

question 166

Multiple Choice

Jones is a partner in a law firm in a small town,and he is also doing legal work out of his home in the evenings for himself.Which of the following statements is correct with respect to his responsibility for the money he earns?

• A)Jones has a duty to tell the other partners,but the money is his and he can continue the extra work regardless of the other partners' consent.
• B)Jones has no responsibility; the money he makes through this extra work is his.
• C)Such conduct will automatically dissolve the partnership,but Jones can keep what he has made.
• D)If Jones did not have the consent of his partners,he must pay over all money he makes through his business at home to the partnership.
• E)If Jones is a one-third partner in the law firm,he need only pay over a third of what he makes on the side.

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Definitions:

Per Capita GDP

Gross Domestic Product per person, a measure of a country's economic output that accounts for its population.

Population

The total number of individuals inhabiting a specific area or country.

Consumption

The use of goods and services by households. It is the largest component of aggregate demand in an economy.

Underground Economy

Economic activities that occur outside of government regulation and taxation, including both illegal activities and unreported income from legal work.