In the Liquidation of a Partnership Any Partner Who Has

question 105

Multiple Choice

In the liquidation of a partnership any partner who has a capital deficiency

• A) has a personal debt to the partnership for the amount of the deficiency.
• B) is automatically terminated as a partner.
• C) will receive a cash distribution only on the basis of his or her income-sharing ratio.
• D) is not obligated to make up the capital deficiency.

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Definitions:

NADH

Nicotinamide adenine dinucleotide (reduced form), a coenzyme found in all living cells that plays a critical role in energy production through oxidation-reduction reactions.

Fermentation

Anaerobic breakdown of glucose that results in a gain of two ATP and end products such as alcohol and lactate; occurs in the cytoplasm of cells.

Muscles

Tissues in the body that can contract, enabling movement and force generation.

Oxygen

A chemical element (O) essential for most life forms on Earth; it participates in respiration and forms part of water molecules.