When a partner is unable to pay a capital deficiency
A)The partner must take out a loan to cover the deficiency.
B)The deficiency is absorbed by the remaining partners.
C)The partnership ends.
D)The deficient partner has a personal liability to the other partners.
E)The deficiency is absorbed by the remaining partners and the deficient partner has a personal liability to the other partners.

Question

Quizplus · Accepted Answer

When a partner cannot cover a capital deficiency, the remaining partners typically absorb the deficiency, and the deficient partner also has a personal liability to the other partners. This ensures the partnership can continue operating while also holding the deficient partner accountable.

When a Partner Is Unable to Pay a Capital Deficiency