Asked by Kimberly Mederos on Jun 08, 2024
Verified
Which of the following is the second step of partnership termination?
A) Liquidation
B) Merger
C) Dissolution
D) Winding up
Partnership Termination
The dissolution or ending of a partnership agreement, which involves the winding up of its business activities.
Liquidation
The process of converting assets into cash or cash equivalents by selling them on the open market.
Winding Up
The process of collecting and distributing the firm’s assets after a partnership or corporation has been dissolved.
- Understand the steps and legal implications involved in partnership termination.
Verified Answer
SV
Sheryl VaughnJun 13, 2024
Final Answer :
D
Explanation :
The second step of partnership termination is "winding up," which involves settling the partnership's affairs after dissolution. Dissolution is the first step, where the decision to terminate the partnership is made.
Learning Objectives
- Understand the steps and legal implications involved in partnership termination.
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