Asked by Tasha Christina on May 09, 2024
Verified
Dissolution is the term that solely means to liquidate the partnership.
Dissolution
The process of formally closing or ending a business entity or partnership, involving the disbursement of its assets and liabilities.
Liquidate
The process of converting assets into cash or other assets, often done in the course of winding down a company.
- Apprehend the procedure for winding up a partnership, including the management of cash payouts and the duties of partners in the event of insufficiency in capital balances.
Verified Answer
MK
Meaghan KalerMay 11, 2024
Final Answer :
False
Explanation :
Dissolution refers to the process of ending or terminating a partnership, but it does not solely mean to liquidate the partnership. It can involve reorganizing or restructuring without necessarily liquidating.
Learning Objectives
- Apprehend the procedure for winding up a partnership, including the management of cash payouts and the duties of partners in the event of insufficiency in capital balances.
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