Asked by Spencer James on Jul 14, 2024
Verified
Susan, Lynda, and Monica opened a consignment dress shop. The partnership agreement states that the responsibilities for the provision of capital are in the ratio of 2.5: 3.75: 4.5. If the total investment in the business was $365,500, how much did each partner invest?
A) $153,000; $85,000; $127,500
B) $175,000; $150,000; $40,500
C) $150,000; $175,000; $40,500
D) $85,000; $127,500; $153,000
E) $210,000; $115,000; $35,500
Partnership Agreement
A legally binding contract between partners that outlines the terms of the business relationship, roles, and responsibilities.
Total Investment
The complete amount of money invested in a particular project, asset, or portfolio, including all forms of investment such as stocks, bonds, and real estate.
Responsibilities
Duties or tasks that one is required or expected to perform as part of a job or role.
- Compute the allocation of investments and the distribution of profits in partnerships based on predetermined ratios.
Verified Answer
Learning Objectives
- Compute the allocation of investments and the distribution of profits in partnerships based on predetermined ratios.
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