When the assets are sold at a loss and one partner cannot make up the deficit,the other partners have unlimited liability and must make up the deficit.

Question

Quizplus · Accepted Answer

This is true. When one partner cannot make up the deficit from the sale of assets, the other partners are responsible for making up the difference. This is because partnerships have unlimited liability, meaning that each partner is personally responsible for the debts and losses of the business.

When the Assets Are Sold at a Loss and One