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:

Moral Character

The set of qualities that defines a person's principles and ethical standards guiding their behavior and actions.

Honesty

The quality of being truthful, transparent, and free from deceit in one's actions and communications.

External Recruiting

The process of searching for and hiring an employee from outside the organization to fill a vacancy.

Job Posting

An announcement, often made public by employers, regarding an available position within an organization seeking applicants.