If a Partner Has a Capital Deficiency and Does NOT

question 120

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:

Celibate Lives

A lifestyle choice where individuals abstain from marriage and sexual relations, often for religious, cultural, or personal reasons.

Shakers

A religious sect known for its communal living, celibacy, and simple lifestyle, named after their practice of ecstatic dancing as part of worship.

Mormons

Members of The Church of Jesus Christ of Latter-day Saints, a religious group founded in the early 19th century by Joseph Smith, known for its unique scriptures including the Book of Mormon.

Oneidas

A member of a Native American people originally from upstate New York, known for their role in American history and as part of the Iroquois Confederacy.