The partnership of Clapton, Seidel, and Thomas was insolvent and will be unable to pay $30,000 in liabilities currently due. What recourse was available to the partnership's creditors?
A) they must present equal claims to the three partners as individuals.
B) they must try obtain a payment from the partner with the largest capital account balance.
C) they cannot seek remuneration from the partners as individuals.
D) they may seek remuneration from any partner they choose.
E) they must present their claims to the three partners in the order of the partners' capital account balances.

Question

Quizplus · Accepted Answer

When a partnership is insolvent, creditors can seek remuneration from any partner they choose. The partners are jointly and severally liable for the partnership's debts, meaning that each partner is individually responsible for the full amount of the partnership's liabilities. Therefore, creditors can choose to seek payment from the partner who is most capable of paying or the one with the largest capital account balance, but they are not required to do so.

The Partnership of Clapton, Seidel, and Thomas Was Insolvent and Will