The liquidation of a partnership

A) cannot be a voluntary act of the partners.
B) terminates the business.
C) eliminates those partners with a capital deficiency.
D) cannot occur unless all partners approve.

Capital Deficiency

A situation where a company's total capital is less than its total liabilities, indicating financial distress.

Voluntary Act

An action undertaken by an individual or entity out of free will without coercive influences.

Liquidation

The process of converting assets into cash or cash equivalents by selling them, often associated with dissolving a company or paying off debts.