A familiar adage is that it is important to "never underestimate a rival." Does behavioral game theory also suggest that it is important not to overestimate rivals? Explain. Behavioral game theory suggests that managers A. can never overestimate their rivals because they will use rational strategies. B. should not overestimate their rivals because they may have psychological biases. C. should not overestimate their rivals because they may carefully consider their strategies. D. should overestimate their rivals because they may be strategic thinkers. E. should overestimate their rivals because they may lack the ability to reason.

The struter partnership has total partners’ equity of $510,000, which is made up of main, capital, $400,000, and frist, capital, $110,000. the partners share net income and loss in a ratio of 80% to main and 20% to frist. on november 1, adison is admitted to the partnership and given a 15% interest in equity and a 15% share in any income and loss. prepare journal entries to record the admission of adison for a 15% interest in the equity and a 15% share in any income and loss under the following independent assumptions. (1) record the admission of adison with an investment of $90,000 for a 15% interest in the equity and a 15% share in any income and loss. (2) record the admission of adison with an investment of $120,000 for a 15% interest in the equity and a 15% share in any income and loss. (3) record the admission of adison with an investment of $80,000 for a 15% interest in the equity and a 15% share in any income and loss.