Max, Jenny, and Craig are partners. They have purchased an elegant Victorian home and converted it into an office for their partnership. Craig decides to use the partnership's office to host some evening parties. Craig has a sideline business of arranging expensive gatherings and charging each person a handsome price to attend these "elite" parties. When Max and Jenny find out what Craig is
doing, they demand that he pay them for the use of the property. How much money, if any, is Craig required to pay the partnership?
a. Nothing. He is free to use partnership property for his own uses.
b. Nothing, but he will be removed from the partnership for violating his fiduciary duty.
c. He must turn over any profits he earned from this activity.
d. He must pay the fair market value for the use of the house.
c
You might also like to view...
A non-business entity would be particularly concerned about its
a. earnings per share b. price/earnings ratio c. liquidity d. income tax rate
Trezelle Services' payroll register for the week ended August 31 indicates gross payroll of $18,000 and payroll deductions of $4,100 . The journal entry for the payroll for this week would include credit to Cash for
a. $18,000; b. $13,900; c. $4,100; d. $0; e. none of these
How does the text define the concept of “power”?
a. the increasing capacity for action that comes with higher positions in the hierarchy b. the possession of strong influence over the actions of others c. the ability to act, create an effect, or wield force d. the ability to change the course of human events
The duty placed on employers and service providers to accommodate disability in the provision of employment, goods and services, education and transport is governed by which principle:
a. financial acceptability b. value for money c. reasonable adjustment d. common sense