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If the Bank Loan Cannot Be Paid Off After Sale

Question 72

Multiple Choice

If the bank loan cannot be paid off after sale of the partnership assets, who is liable for the remainder of the loan?


A) No one is liable for the remainder of the loan because the partnership is dissolved.
B) The debt is automatically split between Ava and Hiro.
C) All three partners equally, but Ava may not pay Milton's share of the debt.
D) All three partners equally, but Ava may pay Milton's share of the debt.
E) Ava, if she continues the partnership after dissolution.

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