Equity owners or partners usually make contributions of cash or assets in direct proportion to their ownership or partnership interests. If one party chooses not to make a capital contribution, the ownership interests of all the parties are adjusted the changes in their cumulative capital contributions.

Question

Quizplus · Accepted Answer

This is true, as it is a common practice in equity ownership and partnerships to have capital contributions in proportion to ownership interests. If a party does not contribute, the ownership interests of all the parties are adjusted accordingly.

Equity Owners or Partners Usually Make Contributions of Cash or Assets