If, Upon Dissolution of a Partnership, Liabilities of the Partnership

Multiple Choice

If, upon dissolution of a partnership, liabilities of the partnership are greater than the liquidated assets of the partnership, which of the following occurs?

A) The liabilities remain unpaid because the partners are not liable.
B) The managing partner is liable for the liabilities, but other partners are not liable.
C) Each partner must contribute his or her share of the losses to pay creditors.
D) Only partners who did not participate in the management of the business must contribute his or her share of the losses to pay creditors.
E) Only partners who participated in management of the business must contribute his or her share of the losses to pay creditors.