Kelly, Lars, and Mona agree to be partners in Neighborhood Delivery Service (NDS), splitting the profits equally. Kelly contributes 67 percent of the capital. When NDS is dissolved, its liabilities are greater than its assets. The losses are paid by
A. all of the partners in proportion to their capital contributions.
B. all of the partners in proportion to their shares of the profits.
C. Kelly because she contributed most of the capital.
D. Lars and Mona because they contributed the least of the capital.
Answer: B
You might also like to view...
Issuance of stock results in cash inflows that appear in the financing section of the statement of cash flows
a. True b. False Indicate whether the statement is true or false
The merchant courts were established because of the unfair results and limited remedies available in the chancery courts
Indicate whether the statement is true or false
General-jurisdiction trial courts can be found in every state
Indicate whether the statement is true or false
The bad feelings associated with disappointing news can generally be reduced if the receiver knows the reasons for the rejection, feels that the news was revealed sensitively, and believes that the matter was treated seriously and fairly
Indicate whether the statement is true or false