1.

The feature of unlimited liability covers all partners, except

a. General partners
b. Industrial partners
c. Capitalist partners
d. Limited partners

2. If a partner with a debit capital balance during liquidation is personally solvent, the

a. Partner must invest additional assets in the partnership

b. Partner’s debit balance will be allocated to the other partners
c. Other partners will give the partner enough cash to absorb the debit balance
d. Partnership will loan the partner enough cash to absorb the debit balance

3. In a partnership liquidation, the final cash distribution to the partners should be made in
accordance with:

a. Partner’s profit and loss sharing ratio

b. Balances of the partners’ capital accounts
c. Ratio of the capital contributions by the partners
d. Ratio of capital contributions less withdrawal by the partners

4. A deficiency occurs for a partner when

a. His personal assets are less than his personal liabilities

b. His share in the losses of the partnership is more than his capital balance
c. His personal assets are less than his capital balance
d. Loan payable by the partnership to him is greater than his capital balance

5. A deficient and insolvent partner will still have a chance to receive cash from the partnership
of

a. There is a loan payable to him which is higher than the deficiency and insolvency of the
partner
b. There is a loan payable to him which is higher than his capital deficiency
c. If he makes additional investment
d. If the other partners will absorb his deficiency