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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