Florida Contractor Practice Exam

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Prepare for the Florida Contractor Exam with practice tests featuring multiple choice questions and answers. Enhance your knowledge to succeed in various categories of contractor licensing in Florida.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

In the event of a partnership dissolution showing a net loss of $60,000, how much would Noah owe?

$60,000
$4,666
$20,000
$0.00

The correct answer is: $60,000

In a partnership dissolution, when a net loss is incurred, partners are usually responsible for their share of the losses based on their ownership or partnership agreement. In this scenario, the net loss totals $60,000. If Noah is responsible for the full amount of the loss due to the partnership structure or the decision made in the partnership agreement, he would owe $60,000. The justification for this is based on the principle that partners share the financial outcomes of the business, whether they be profits or losses. If the partnership agreement specifies that losses are to be shared equally or if there are no specific terms that limit Noah's liability, he would bear the entire loss amount. Therefore, owing $60,000 aligns with the responsibility outlined in partnership law, which holds partners jointly accountable for loss allocations unless otherwise specified in their contractual agreement.