Raigon and Sharon run a café in partnership. The partnership agreement authorises each partner to order goods and supplies up to a maximum of $1,000 each month, from their regular supplier (Jolly’s Pty Ltd). The partnership has a trading history with Jolly’s Pty Ltd that spans several years. Sharon orders coffee beans, sugar, milk and flour, as well as other essential supplies, for $2,000 (from Jolly’s Pty Ltd) one month. Who is liable for the payment of $2,000 to Jolly’s Pty Ltd? Select one: a. Raigon cannot, under any circumstances, be held liable to make the payment of $2,000: since Sharon has exceeded the maximum limit permitted by the partnership agreement. b. Raigon and Sharon are liable to make the payment because Jolly’s Pty Ltd does not know that Sharon is a partner. c. Raigon and Sharon are liable to make the payment since ordering coffee, sugar and other essential supplies is within the scope of the business of running a café, and the transaction is carried out in the usual way. d. Jolly’s Pty Ltd must have known that Sharon had exceeded their authority due to regular past dealings, and therefore can only claim the payment due from Sharon.

Raigon and Jolly enter into a partnership agreement to run a computer store at the Caulfield campus of Monash University. Raigon and Jolly contribute 60% and 40% of the capital required to establish the business, respectively. However, the partnership agreement is silent about how the profits earned should be divided. Which amongst the following options is CORRECT with regard to this scenario? Select one: a. Profits must be shared in accordance with the partners' contributions to capital. Raigon and Jolly are eligible to receive 60% and 40% of the profits, respectively. b. Profits must not be shared in accordance with the Partnership Act 1958 (Vic) since there is a separate partnership agreement between Raigon and Jolly. c. None of the statements for this question are correct. d. Profits must be shared equally, as provided in s 28 of the Partnership Act 1958 (Vic).

Raigon and Sharon run a café that opens from 6am to 8am every day at the train station. Their responsibilities for running the café are shared equally, and all proceeds are donated to charity (after paying their business expenses). Which of the following statements is most likely CORRECT? Select one: a. Raigon and Sharon are not in a partnership since they reinvest their profit for charity. b. Raigon and Sharon are not in a partnership because they do not share their expenses equally. c. Raigon and Sharon are in a partnership since they run the café with a sharing of responsibilities. d. Raigon and Sharon are in a partnership since they run the café regularly.

A customer owing $1 000 to Paula's Pottery Ltd. contacts the business to advise that they will only be able to pay 30 cents in every dollar they owe to pay their account. The amount that will be written off as irrecoverable by Paula's Pottery Ltd will be

Xander's Muffins is trying to decide whether or not to continue a particular muffin flavour. The information shown is available for Xander's different muffin ranges. If the range is dropped, the business will not pay the direct fixed costs, but will still have the allocated common fixed costs. Blueberry Raspberry white chocolate Banana walnut Sales volume 500 units 500 units 500 units Sales price $4 per unit $5 per unit $4.50 per unit Variable costs $1.50 per unit $1.75 per unit $1.25 per unit Direct fixed costs 1,000 1,000 1,000 Allocated common fixed costs 500 1500 500 Net income -250 -875 125 What will be the total net profit if the business drops the Blueberry muffins?

Zac authorises his agent, Jolly, to purchase shares up to a value of $100,000. Jolly purchases shares with a total value of $125,000. Which amongst the following options is CORRECT? Select one: a. None of the statements for this question are correct. b. Zac is bound by the purchase if Jolly has apparent authority to purchase the shares above a value of $100,000. c. Zac is bound by the purchase since Jolly did not have the actual authority to purchase shares above a value of $100,000. d. Whether Zac is bound will depend upon how things appear to the third party, and this will be assessed by what they thought subjectively.