Asked by Laken Guzic on Jul 04, 2024
Verified
What is the term for a dissociation that violates the partnership agreement?
A) Wrongful dissociation
B) Breach dissociation
C) Fraud dissociation
D) Agent dissociation
Wrongful Dissociation
A term referring to the improper withdrawal of a partner from a partnership or a member from a limited liability company (LLC), which can lead to potential legal and financial penalties.
Partnership Agreement
A contract between partners in a business that outlines the terms, conditions, and distribution of profits and losses.
- Gain insight into the distinctions between wrongful and nonwrongful dissociation in partnership contexts.
- Grasp the concept of wrongful dissociation and its consequences on the partnership and the dissociated partner.
Verified Answer
IR
Ibzan RamirezJul 08, 2024
Final Answer :
A
Explanation :
Wrongful dissociation is when a partner violates the partnership while dissociating from the partnership.
Learning Objectives
- Gain insight into the distinctions between wrongful and nonwrongful dissociation in partnership contexts.
- Grasp the concept of wrongful dissociation and its consequences on the partnership and the dissociated partner.