Kelly,Lars,and Mona agree to be partners in Neighborhood Delivery Service (NDS),splitting the profits equally.Kelly contributes 67 percent of the capital.When NDS is dissolved,its liabilities are greater than its assets.The losses are paid by
A)all of the partners in proportion to their capital contributions.
B)all of the partners in proportion to their shares of the profits.
C)Kelly because she contributed most of the capital.
D)Lars and Mona because they contributed the least of the capital.

Question

Quizplus · Accepted Answer

In a partnership, unless otherwise agreed, losses are shared in the same proportion as profits. Since Kelly, Lars, and Mona agreed to split profits equally, they will also share losses equally.

Kelly,Lars,and Mona Agree to Be Partners in Neighborhood Delivery Service