When a Partner Is Unable to Pay a Capital Deficiency

question 39

Multiple Choice

When a partner is unable to pay a capital deficiency:

• A) The deficient partner has a personal liability to the other partners.
• B) The deficiency is absorbed by the remaining partners and the deficient partner has a personal liability to the other partners.
• C) The deficiency is absorbed by the remaining partners.
• D) The partnership ends.
• E) The partner must take out a loan to cover the deficiency.

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