Asked by Austin Brown on Mar 10, 2024

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Which of the following causes dissociation?

A) A partner's transfer of his transferable partnership interest
B) A creditor's obtaining a charging order
C) A partner's wrongful conduct materially affecting the partnership business
D) The addition of a new partner to a partnership

Transferable Partnership Interest

The right of a partner to transfer their share of the partnership's profits, losses, and distributions to another party, subject to the terms of the partnership agreement.

Charging Order

A court order directing the interests of a debtor in a partnership or LLC to be given to a creditor, as a means of satisfying the debtor's outstanding debt.

Wrongful Conduct

Actions or behaviors that are illegal, unethical, or otherwise improper and can lead to liability.

  • Understand the concepts of wrongful and nonwrongful dissociation in partnerships.
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Verified Answer

LC
Lauren ChandlerMar 10, 2024
Final Answer :
C
Explanation :
A partner's transfer of his transferable partnership interest,by itself,does not cause a dissociation from the partnership,and neither does a creditor's obtaining a charging order.Also,the addition of a partner to a partnership is not a dissociation,because no one ceases to be associated in the business.However,a partner's wrongful conduct that adversely and materially affects the partnership business results in a wrongful dissociation.