Asked by James Coleman on Jul 04, 2024
Verified
If, upon dissolution of a partnership, one partner pays liabilities of the partnership that are greater than the liquidated assets of the partnership, which of the following is true?
A) The partner who paid has a right of contribution against any partner who did not pay.
B) The partner who paid has no right of contribution against any other partner.
C) The partner who paid has a right of contribution against other partners only if the partner who paid was not the managing partner.
D) The partner who paid has a right of contribution only against other partners who participated in the management of the partnership.
E) The partner who paid has a right of contribution only against other partners who did not participate in the management of the partnership.
Liabilities
Obligations owed by an individual or entity to others, which can include financial debts, accounts payable, or other fiscal responsibilities.
Liquidated Assets
Assets that have been converted into cash or cash equivalents by selling them on the open market.
Right of Contribution
A legal principle allowing individuals who have paid more than their share of a common debt to seek reimbursement from others who are equally liable.
- Pinpoint the responsibilities and potential legal exposures of partners at the time of dissolution.
Verified Answer
Learning Objectives
- Pinpoint the responsibilities and potential legal exposures of partners at the time of dissolution.
Related questions
After Dissolution, the Remaining Partners Have a Right to Continue ...
When the Winding Up Partners Disagree During the Process ...
Dissolution of a Partnership Can Occur Under the Limited Life ...
According to the Revised Uniform Limited Partnership Act, Which of ...
Distributions-In-Kind During a Winding Up Occurs When ...