If a Partner Has a Capital Deficiency and Does Not

question 121

Multiple Choice

If a partner has a capital deficiency and does not have the personal resources to eliminate it

• A) the creditors will have to absorb the capital deficiency.
• B) the other partners will absorb the capital deficiency on the basis of their respective capital balances.
• C) the other partners will have to absorb the capital deficiency on the basis of their respective income sharing ratios.
• D) neither the creditors nor the other partners will have to absorb the capital deficiency.

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Definitions:

Urination

The process of excreting urine from the urinary bladder through the urethra to the outside of the body.

Urine

A liquid waste product filtered from the blood by the kidneys and expelled from the body.

Study Of

A phrase used to indicate the examination or analysis of a particular subject, field, or phenomenon.

Bronchiole

A small airway in the respiratory tract that leads from the bronchus to the alveolar ducts.