1. Sierra and Don formed a general partnership. At the time of the partnerships formation, Sierras capital contribution was $10,000 and Dawns capital contribution $15,000. Later, Sierra made a $10,000 loan to the partnership when it needed more working capital. The partnership agreement provided that profits were to be shared with 40% for Sierra and 60% for Don. The partnership was dissolved after Dons death. At the end of the dissolution and winding up of the partnership, the partnership assets were $50,000 and the partnerships debts were $18,000 (including the $10,000 loan made by Sierra). The partnerships assets should be divided as follows:

	a.	The partnerships creditors and Sierra would be paid $18,000 first, leaving a balance of $32,000 from the $50,000. From this amount, Sierra would receive $10,000 and Dons estate $15,000 as payment for their capital contributions, and $7,000 would be split as profits, with 40% going to Sierra ($2,800) and 60% going to Dons estate ($4,200).
	b.	The partnerships creditors and Sierra would be paid $18,000 first, leaving a balance of $32,000 from the $50,000. The balance of $32,000 would be split evenly between them.
	c.	Sierra would receive 40% of the $50,000 ($20,000) and Don would receive 60% of the $50,000 ($30,000).
	d.	Each of them would get their capital contribution back and then they would split the remaining amount equally.

2. A _____________________ is a contractual arrangement whereby the owner of intellectual property licenses others to use it in the selling of goods or services.

	a.	franchisee
	b.	franchisor
	c.	franchise
	d.	licensee