David, Ed, and Fred are partners in the DEF partnership. The partnership is being dissolved, having $200,000 in assets and owing $410,000 to creditors. David contributed $100,000 in capital; Ed contributed $50,000 in capital; and Fred contributed $25,000 in capital. Profits are shared equally. Which of the following is correct with regard to the responsibility of each partner?
a. The partners will bear losses equally.
b. The partners will bear losses in the proportion of their relative capital contributions.
c. If Ed refuses to contribute to covering the loss and he is out of the jurisdiction, David and Fred must contribute the additional amount necessary to pay DEF's liabilities in the relative proportion of their capital contributions.
d. Any of these could be true, depending on the partnership agreement.
a
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As part of his company's initiative to create a high-performance work system, Cody, an HR manager, has been reorganizing work so that teams of employees will concentrate on coordinating their efforts to make sure customers are satisfied. The vice president of human resources has asked Cody to explain to a team of executives how this project will help the company's financial performance. What would be the most effective explanation for Cody to use?
A. Customer satisfaction should lower employee absenteeism and turnover, which reduces costs and raises profits. B. Improving customer satisfaction should increase demand, leading to greater sales and profits. C. Getting employees focused on customer satisfaction should take their focus off compensation, lowering costs. D. Satisfied customers should result in higher quality, which, in turn, will increase the degree of innovation. E. Focusing on customer satisfaction will drive up productivity, which, in turn, drives up profits.
Persons who are injured by the tortious act of another may file a civil suit for actual damages to compensate them for their injuries.
Answer the following statement true (T) or false (F)
Which of the following was a controversial issue faced by the Accounting Principles Board (APB)?
a. The investment tax credit b. Income tax allocation c. Business combinations and goodwill d. All of the above
According to the text, when examining production activities, managers are quick to recognize that inventory costs are a major factor and getting rid of inventory can lower labor cost by ______ or more.
A. two-thirds B. 15 percent C. 25 percent D. 75 percent E. 40 percent