Partner A has a smaller capital balance than Partner L.Partner A,however,has a higher profit-and-loss-sharing percentage than Partner L.The LA partnership has decided to liquidate.As a result of the information given,A

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Partner A has a higher profit-and-loss-sharing percentage, which means they are entitled to a larger share of the profits but also responsible for a larger share of the losses. As a result, Partner A will have a smaller loss absorption power than Partner L, meaning they will be more likely to lose out in the liquidation process. Partner L may receive cash after Partner A if there are not enough assets left to cover all partners' capital balances.

Partner a Has a Smaller Capital Balance Than Partner L