Final answer:
It is false that a partner who experienced a deficit in liquidation and had other partners pay it off is relieved of their liability. In a general partnership, all partners are typically liable for the business's debts, which could include covering each others' deficits unless stated otherwise in a partnership agreement.
Step-by-step explanation:
The answer to the question is false. If partners in a business take on the responsibility of covering a deficit caused by another partner during liquidation, it does not necessarily relieve the deficient partner of their liability. In a general partnership, each partner is personally liable for the business's debts. This personal liability can result in partners losing personal assets if the business faces bankruptcy or a lawsuit.
In some cases, a partnership agreement may outline specific scenarios and consequences regarding the responsibility and liability of individual partners when covering each others' deficits. However, without an agreement that explicitly states otherwise, paying off another partner's deficit does not absolve them of their liability.