If a Partner Has a Capital Deficiency and Does Not

question 83

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 profit-sharing ratios.
• D) neither the creditors nor the other partners will have to absorb the capital deficiency.

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Definitions:

Autonomic Nervous System

A part of the peripheral nervous system that regulates involuntary body functions, including heart rate, digestion, and respiratory rate.

Apprehension

A feeling of anxiety or fear that something bad or unpleasant will happen.

Phobic Fear

An intense, irrational fear of specific objects, situations, or activities, leading to avoidance behavior and distress.

Spiders

Arachnids characterized by eight legs, a body divided into two parts (the cephalothorax and abdomen), and the ability to spin webs.