Asked by Lily Nyarko on Jun 24, 2024
Verified
The liquidation of a partnership may result from each of the following except the
A) bankruptcy of the partnership.
B) death of a partner.
C) retirement of a partner.
D) sale of the business by the partners.
Liquidation
The process of closing a business by selling its assets to pay off its liabilities, with any remaining proceeds distributed to shareholders or owners.
- Understand the concept of partnership liquidation and the situations that may lead to it.
Verified Answer
VD
vishav dhillonJun 28, 2024
Final Answer :
C
Explanation :
The retirement of a partner does not necessarily result in the liquidation of a partnership. The partnership can continue with the remaining partners or with the introduction of new partners.
Learning Objectives
- Understand the concept of partnership liquidation and the situations that may lead to it.