Under general circumstances, debt is allocated from the partnership to each partner in the following manner:

A. Recourse-profit-sharing ratios; nonrecourse-to partners with the ultimate responsibility for paying the debt.
B. Recourse-to partners with the ultimate responsibility for paying the debt; nonrecourse-profit-sharing ratios.
C. Recourse-capital ratios; nonrecourse-capital ratios.
D. Recourse-profit-sharing ratios; nonrecourse-profit-sharing ratios.


Answer: B

Business

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