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Under General Circumstances, Debt Is Allocated from the Partnership to Each

Question 93

Multiple Choice

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


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

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