Three Students in a Business Faculty Created a Computer Program

question 210

Multiple Choice

Three students in a business faculty created a computer program that compared various retirement plans. They decided to go into business together to offer their services directly to the public. After doing a feasibility study, they felt there were profits to be made. For tax reasons, they decided not to incorporate. Each contributed $15,000 and Wayne, one of the three, contributed a computer. In a short written agreement, they agreed that all three would be actively involved in the management of the business, that all three would work to update the program, that they would share the profits equally, and that they should not be viewed as partners. Based on these facts, which of the following statements is true?

• A) They would be considered partners despite their express intention to the contrary in their agreement.
• B) If one partner dies, the partnership would be dissolved even if they state otherwise in their agreement.
• C) They are not partners unless they realize a profit from their enterprise.
• D) They are not partners because they do not share profits in proportion to their capital contributions.
• E) If Wayne were to go bankrupt, the partnership would be dissolved even if they state otherwise in their agreement.

Explain the concepts of Say's law and the reasons for its critique by Keynesian economics.

Recognize the factors that shape the aggregate demand curve and how shifts in aggregate demand affect the economy.

Understand the conditions for macroeconomic equilibrium and the role of government intervention according to Keynes.

Distinguish between the short-run and long-run aggregate supply curves and their significance in economic analysis.

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Definitions:

OTC Market

Over-The-Counter Market; a decentralized market where securities not listed on formal exchanges are traded directly between parties.

Sole Proprietorship

A company controlled and managed by one person, with the individual and the company being legally regarded as the same entity.

General Partnership

A type of business partnership where all partners share both profits and liabilities equally unless a different arrangement is agreed.

Characteristics

Fundamental attributes or properties that define or distinguish an entity or concept.