When Is a Partnership Considered to Be Insolvent

question 47

Multiple Choice

When is a partnership considered to be insolvent?
I.When the total of all partners' capital accounts results in a debit balance.
II.When at least one of the partners is personally insolvent.

• A)I only
• B)II only
• C)Both I and II
• D)Neither I nor II

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Definitions:

Responsibility

The state or fact of having a duty to deal with something or of having control over someone, often entailing being accountable for one's actions or decisions.

Nondirective

A therapeutic approach where the counselor does not give advice or directions but helps the client to explore their own feelings and thoughts.

Directive

An authoritative or official instruction or command.

Gestalt Therapy

A therapy method that stresses the significance of personal accountability and is centered around a person's immediate experiences.