In the Liquidation of a Partnership, Any Partner Who Has

question 102

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 profit-sharing ratio.
• D) is not obligated to make up the capital deficiency.

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Definitions:

Price Controls

Government-imposed limitations on the prices that can be charged for goods and services in a market.

Energy Products

Energy products refer to commodities used for generating power, such as petroleum, natural gas, coal, and renewable energy sources.

Consumption

The process through which goods and services are used up or utilized.

Short Run

In economics, a period during which at least one input, such as plant size, is fixed and cannot be changed.