Asked by Rachel Tweedy on Jun 10, 2024
Verified
Mike,Randy,and Steve are partners of a partnership.Mike and Steve loan the partnership $10,000 each.Which of the following statements is true?
A) Randy is a debtor of the partnership.
B) Mike and Steve are the sole owners of the partnership.
C) Mike and Steve are both owners and creditors of the partnership.
D) Mike,Randy,and Steve are all owners and creditors of the partnership.
Creditors Of Partnership
Individuals or entities that a partnership owes money to.
Sole Owners
Individuals or entities that are the exclusive legal proprietors of a business, property, or any asset.
- Comprehend the delineation and handling of capital and contributions within a partnership.
- Absorb information regarding the nature of property held in a partnership and its ownership dynamics.
Verified Answer
CL
Caroline LivingstonJun 12, 2024
Final Answer :
C
Explanation :
Loans made by partners to a partnership are not partnership capital but,instead,are liabilities of the business.Partners who make loans to a partnership are both owners and creditors.
Learning Objectives
- Comprehend the delineation and handling of capital and contributions within a partnership.
- Absorb information regarding the nature of property held in a partnership and its ownership dynamics.