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.

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Definitions:

Manic-depressive

An outdated term for bipolar disorder, characterized by extreme mood swings from manic highs to depressive lows.

Hallucinations

Perceptions or sensory experiences that occur without an external stimulus, often seen in various psychiatric conditions.

Delusions

Fixed false beliefs that are maintained despite strong evidence to the contrary, often seen in psychiatric conditions.

Schizophrenic Disorders

Schizophrenic disorders encompass a range of mental health conditions characterized by disruptions in thought processes, perceptions, emotional responsiveness, and social interactions.