Which of the Following Is True Regarding an Insolvent Partnership

question 43

Multiple Choice

Which of the following is true regarding an insolvent partnership under the UPA?

• A) The partners must contribute their respective share to the losses in order to pay creditors.
• B) If one of the partners is out of the jurisdiction and refuses to contribute,the other parties must contribute the additional amount necessary to pay the firm's liabilities in the relative proportions in which they share the profits.
• C) Any partner who pays an amount in excess of his proper share of the losses has a right of contribution against the partners who have not paid their share.
• D) All of these are true.

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Definitions:

Directing

The process by which managers, given their assigned level of responsibilities, run day-to-day operations.

Controlling

In management, it refers to the process of setting standards, measuring actual performance, and taking corrective action to ensure the achievement of an organization's objectives.

Budgeted Goals

Objectives set during the budgeting process that financial and operational plans aim to achieve within a specific time frame.

Cash Budget

A cash budget is a financial plan that estimates the cash inflows and outflows over a specific period, helping businesses manage their liquidity and financial stability.