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Question
An advantage of the proprietorship form of business organization is
a. unlimited liability
b. mutual agency
c. ease of formation
d. limited life
Use this information to answer the questions that follow.
The capital accounts of Harrison and Marti have balances of $160,000 and $110,000, respectively, on January 1, the beginning of the current fiscal year. On April 10, Harrison invested an additional $20,000. During the year, Harrison and Marti withdrew $96,000 and $78,000, respectively, and net income for the year was $264,000. The articles of partnership make no reference to the division of net income.
Answer
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