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:

Depression's Vicious Cycle

A repetitive loop where negative thoughts exacerbate depressive symptoms, which in turn generate more negative thoughts.

Behavioral Withdrawal

The act of retreating or disengaging from social interactions and activities, often as a coping mechanism for stress or anxiety.

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The act of being deliberately excluded or dismissed by individuals or groups in social or professional contexts.

External and Temporary

Characteristics or conditions outside of an individual that are not permanent or lasting in nature.