When a Partner Is Unable to Pay a Capital Deficiency

question 7

Multiple Choice

When a partner is unable to pay a capital deficiency:

• A) The partner must take out a loan to cover the deficient balance.
• B) The deficient partner is relieved of the liability.
• C) The remaining partners must wait for the deficiency to be paid before cash is distributed.
• D) The partnership ends before distribution of cash.
• E) The deficiency is absorbed by the remaining partners before distribution of cash.

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Definitions:

S-R Association

The connection between a stimulus and the response it triggers, fundamental to behaviorist theories of learning and conditioning.

Learning Process

The acquisition of knowledge, skills, behaviors, or preferences, often as a result of study, experience, or teaching, which involves changes in the brain.

Cathexis

The idea that the ability of deprivation states to motivate behavior transfers to the stimuli present during the deprivation state.

Tolman

An American psychologist known for his work on latent learning and cognitive maps in rats and humans.