Cal, Dex, and Erin agree to be partners in Fajitas, splitting the profits equally. Cal contributes 65 percent of the capital. When Fajitas 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) Cal because he contributed most of the capital.
D) Dex and Erin 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 Cal, Dex, and Erin agreed to split profits equally, they will also share losses equally.

Cal, Dex, and Erin Agree to Be Partners in Fajitas