What Is the Preferred Method of Resolving a Partner's Deficit

question 18

Multiple Choice

What is the preferred method of resolving a partner's deficit balance, according to the Uniform Partnership Act?

• A) Partners never have a deficit balance.
• B) The other partners must contribute personal assets to cover the deficit balance.
• C) The partnership must sell assets in order to cover the deficit balance.
• D) The partner with a deficit balance must contribute personal assets to cover the deficit balance.
• E) The partner with a deficit balance contributes personal assets only if those personal assets exceed personal liabilities.

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Definitions:

Arc Elasticity

A method for calculating elasticity between two points on a demand curve using the midpoint formula.

Wheat Demand

The total quantity of wheat that consumers are willing and able to purchase at a given price level.

Price Elasticity of Demand

A measure of the responsiveness of the quantity demanded of a good to a change in its price.

Bushel of Wheat

A unit of measure for volumes of dry commodities, typically used in agriculture for wheat, equivalent to approximately 35.24 liters.