In a schedule of assumed loss absorptions

Question

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In a schedule of assumed loss absorptions, the most vulnerable partner is eliminated first. This ensures that the partners with the highest risk exposure are protected first, and the remaining partners absorb the losses only in the event that the more vulnerable partners are unable to do so. The order of elimination is based on the level of vulnerability of each partner, rather than their cash distribution plan or their ranking in terms of loss absorption.

In a Schedule of Assumed Loss Absorptions