8. Ted and Fred are the owners of a gas station. They invested

$150,000 each and pay an employee named Lawrence $35,000 per year. This year revenues are $900,000, while costs are

$940,000. Who is legally responsible for bearing the $40,000 loss? LO2.6

a. Lawrence.

b. Ted.

c. Fred.

d. Ted and Fred.

e. Lawrence, Ted, and Fred.