Under General Circumstances, Debt Is Allocated from the Partnership to Each

question 83

Multiple Choice

Under general circumstances, debt is allocated from the partnership to each partner in the following manner:

• A)Recourse-profit-sharing ratios; nonrecourse-profit-sharing ratios.
• B)Recourse-capital ratios; nonrecourse-capital ratios.
• C)Recourse-to partners with the ultimate responsibility for paying the debt; nonrecourse-profit-sharing ratios.
• D)Recourse-profit-sharing ratios; nonrecourse-to partners with the ultimate responsibility for paying the debt.

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