When a Partner Is Unable to Pay a Capital Deficiency

question 45

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 deficiency is absorbed by the remaining partners before distribution of cash.
• C) The partnership ends before distribution of cash.
• D) The deficient partner is relieved of the liability.
• E) The remaining partners must wait for the deficiency to be paid before cash is distributed.

---

Definitions:

Anti-War Speech

A public discourse aimed at opposing military conflict and advocating for peace.

Sedition Act of 1918

A United States federal law enacted during World War I to restrict speech that was deemed disloyal or abusive towards the government, flag, or military, later repealed but controversial for its impact on free speech.

Conscientious Objectors

Individuals who refuse to serve in the armed forces or partake in war due to moral, ethical, or religious beliefs, often facing legal penalties, social ostracism, or alternative service assignments.

Ford Motor Company

An American multinational automaker founded by Henry Ford in 1903, known for revolutionizing the automobile industry with assembly line production.