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:

Wit

A form of intelligent humor, the ability to say or write things that are clever and usually funny.

Child-directed Speech

The adjusted way of speaking that adults use when talking to young children, often involving simplified vocabulary, higher pitch, and exaggerated intonation.

Higher Pitch

A tone that is perceived as having a higher frequency compared to another tone, often associated with sounds of a higher frequency.

Simple Words

The use of easy-to-understand, basic vocabulary intended to convey information clearly and directly.