If at the Time of Partnership Liquidation, a Partner Has

question 112

True/False

If at the time of partnership liquidation, a partner has a $5,000 capital deficiency and pays the partnership $5,000 out of personal assets to cover the deficiency, then that partner is entitled to share in the final distribution of cash.

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Definitions:

Trust

A fiduciary arrangement whereby one party, known as a trustee, holds assets for the benefit of another party or parties, known as beneficiaries.

Condition

A specific requirement within a contract that must be fulfilled for the contract to be completed or valid.

Negotiated

describes the process of discussing and arriving at a mutual agreement between parties, often relating to contracts or financial instruments.

Indorse

To formally support or approve, often used in the context of endorsing a check or bill of exchange.