When a Partner Is Unable to Pay a Capital Deficiency

question 32

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.
• C)The partnership ends.
• D)The deficient partner has no personal liability to pay the deficiency.
• E)The partnership must be liquidated.

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Definitions:

Self-Esteem

An individual's subjective evaluation of their own worth and abilities.

Sense of Purpose

The feeling or belief that one has a meaningful direction in life or contributes to something greater than oneself.

Social Learning

A theory that proposes individuals can learn new behaviors or knowledge by observing and imitating others within a social context.

Albert Bandura

A psychologist renowned for his work on social cognitive theory, including the concept of self-efficacy and observational learning.