Ask Question
BusinessBusiness
13 October, 03:50

Under general circumstances, debt is allocated from the partnership to each partner in the following manner: A. Recourse - profit sharing ratios; nonrecourse - profit sharing ratios B. Recourse - capital ratios; nonrecourse - capital 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

+4
Answers (1)
  1. 13 October, 06:28
    0
    Recourse - to partners with the ultimate responsibility for paying the debt; nonrecourse - profit sharing ratios

    Explanation:

    A partnership is defined as an agreement where two or more parties decide tooversee that activities of a business and share the profit and loss realised. It is common for professionals such as doctors and lawyers to form partnerships.

    Recourse debt is defined as the portion of loss realised by the business that is borne by each of the partners. Partners with ultimate responsibility bears the debt.

    However nonrecourse items such as loans are shared among partners on the basis of profit sharing ratio
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Under general circumstances, debt is allocated from the partnership to each partner in the following manner: A. Recourse - profit sharing ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Ace, Inc. just bought a new delivery truck. Which of these costs should be capitalized?1. The $500 for insurance on the truck for the next 12 months2. The $25,000 cost of the truck3. The $2,000 paid to install shelves inside the truck4.
Answers (1)
As a result of increased tensions in the Middle East, oil production is down by 1.21 million barrels per day - a 5 percent reduction in the world's supply of crude oil.
Answers (1)
What is 1 question to ask a janitor? (This not for an interview) I already have: Why did you want to be a custodian? What are some previous jobs that you had, and which ones gave you experience towards this job?
Answers (1)
When the overall level of goods and services available remains constant?
Answers (1)
In a certain economy, jam and bread are produced, and the economy currently operates on its production possibilities frontier.
Answers (1)
New Questions in Business
A country that has multinational corporations is most likely to be
Answers (2)
If a tree grew more than 3 feet during the year, how much more likely is it that the tree was at most 50 yards from the river?
Answers (2)
An HP-10BII can solve problems with up to 15 beginning-of-year cash flows when there are no consecutive equal cash flows. True / False.
Answers (1)
Do you think we need to prioritize wants? why
Answers (1)
When the auditors discover an overstatement of accounts payable, they would most likely also expect to find an overstatement of:?
Answers (1)
Home » Business » Under general circumstances, debt is allocated from the partnership to each partner in the following manner: A. Recourse - profit sharing ratios; nonrecourse - profit sharing ratios B. Recourse - capital ratios; nonrecourse - capital ratios C.
Sign Up Forgot Password?