You plan to invest $10,000 in a general partnership. There will be four other general partners, each
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Question:
You plan to invest $10,000
in a general partnership. There will be four other general partners, each contributing $10,000
. So, the total contributed by the general partners is $50,000
and each partner owns 20%
of the partnership. The partnership plans to borrow $250,000
from the bank. Therefore, the partnership will have a total of $50,000+$250,000=$300,000
in cash to start its business. What is your largest potential loss from your investment in the partnership? In other words, how much would you lose if the $300,000
is invested in an asset that immediately loses all of its value (i.e., the asset's value drops to $0
)?
Related Book For
Statistics For Managers Using Microsoft Excel
ISBN: 9780133130805
7th Edition
Authors: David M. Levine, David F. Stephan, Kathryn A. Szabat
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