Ernie and Bert agree to form a partnership. Because the two are great friends, no written partnership agreement is made. Ernie agrees to contribute $100,000 in assets and to devote half of his time to the partnership. Bert is to contribute $40,000 in assets and to devote all of his time to running the operations of the partnership. Ernie and Bert will divide any net income or net loss in the following ratio (respectively): O 5:2 10:4 O 1:1 O 1/2:1 Question 3 4 pts Liquidation of an existing partnership must be done in a precise order. The proper steps to follow when liquidating a partnership are sell assets, distribute gains or losses to partners based on income sharing ratio, pay the liabilities with the cash from sale of assets, distribute remaining cash based on capital account balances. sell assets, pay liabilities off, distribute gains or losses based on income sharing ratio, distribute cash based on income sharing ratio. o sell assets, distribute gains or losses based on capital account balances, pay liabilities off, distribute remaining cash based on capital account balances. sell assets, distribute cash based on income sharing ratio, pay liabilities off, distribute remaining cash based on income sharing ratio. D Question 6 4 pts Which of the following is/are characteristics of an LLC? An LLC may elect to be taxed like a partnership, so that the income/loss of the LLC "flows through to the LLC's members. Members of an LLC have limited liability, which means their personal assets are protected from the LLC's creditors' claims. In general, an LLC has access to capital (funds) more easily than a partnership. O All of the above are characteristics of an LLC. Question 4 pts Probably the major disadvantage of the standard corporation form of business is limited liability. O double taxation of dividends paid to shareholders. limited life. O an ability to issue bonds as a form of raising funds