Explain who is correct in given contention

Assignment Help Business Law and Ethics

Reference no: EM131389330

Lauren, Matthew, and Susan form a partnership, Lauren contributing $100,000; Matthew $50,000; and Susan her time and skill. Nothing is said regarding the division of profits. The firm later dissolves. No distributions to partners have been made since the partnership was formed. The partnership sells its assets for a loss of $90,000.

After payment of all firm debts, $60,000 is left. Lauren claims that she is entitled to the entire $60,000. Matthew contends that the distribution should be $40,000 to Lauren and $20,000 to Matthew. Susan claims the $60,000 should be divided equally among the partners. Who is correct? Explain.

Reference no: EM131389330

Questions Cloud

What is the extent of muirs personal liability : What is the extent of Muir's personal liability and the personal liability of Jones and Ray as to the judgment obtained by Ware and the debt owing to XYZ Bank?

Find the expression for the aggregate demand curve : Find the government purchases multiplier and interpret it. Find the tax multiplier and interpret it. Find an expression for the IS curve. Find an expression for the LM curve. Find short run equilibrium level of output, prices, and real interest rate...

Describe the leaders contribution to the field of healthcare : Each year Time magazine publishes "The Most Influential People" in the nation - they are artists, icons, pioneers, and leaders in their respective fields. For more than 100 years, healthcare has eradicated diseases, promoted safer communities, and..

Explain which company is performing better : Interpret these ratios, and explain what they mean for Tootsie Roll Industries Inc., supporting your explanation with your calculations. Compare your company to the competition and explain which company is performing better.

Explain who is correct in given contention : Matthew contends that the distribution should be $40,000 to Lauren and $20,000 to Matthew. Susan claims the $60,000 should be divided equally among the partners. Who is correct? Explain.

Find short run equilibrium level of output and prices : Assume a closed economy described by the following equations: C = 300 + 0.6(Y-T) ; I = 500 - 40R; G = 200; T = 200; M = 2800; (M/P)d = 4Y - 100R; SRAS: P = 1; LRAS: Y=1000 e) Find short run equilibrium level of output, prices, and real interest rate.

What is primary prediction of the philips curve : Over the past several years, the predictions of the Philips Curve haven’t exactly panned out. Now, with the expectation of meaningful expansionary fiscal policy on our horizon, and starting from near full employment, the predictions of the Philips Cu..

How many of the partners must agree to achieve objectives : Creditors are pressing for payment, and some have filed suit. The partners cannot agree on a course of action. How many of the partners must agree to achieve each of the following objectives?

Economy was initially operating at natural level of output : Integrating both the IS/LM and AD/AS model, graphically illustrate the SHORT and LONG run impact of implementing a contractionary monetary policy on a closed economy’s equilibrium interest rate, output, unemployment, and price level. Assume that the ..

User Account

All Pages