Asked by Emily Schreurs on Apr 25, 2024
Verified
Which of the following is a consequence of wrongful dissociation?
A) The dissociated partner may demand dissolution of the partnership.
B) The partnership must terminate on grounds of wrongful dissociation.
C) The dissociated partner should contribute to performing the winding up.
D) The dissociated partner is not entitled to receive the buyout price until the term of the partnership has expired.
Wrongful Dissociation
The inappropriate or unauthorized withdrawal of a partner from a partnership, potentially leading to legal consequences.
Buyout Price
The agreed upon amount for which one party can purchase another party's interest in a company or investment.
Dissolution
The process of formally ending or dissolving a legal entity, such as a corporation, partnership, or marriage.
- Comprehend the principles of wrongful versus nonwrongful dissociation within business partnerships.
- Understand the principle of wrongful dissociation and its impact on both the partnership and the dissociated partner.
Verified Answer
MS
Mihir Suvarna8 days ago
Final Answer :
D
Explanation :
A wrongfully dissociated partner is entitled to his share of the value of his partnership interest,minus the damages he caused the partnership.But he is not entitled to receive the buyout price until the term of the partnership has expired.
Learning Objectives
- Comprehend the principles of wrongful versus nonwrongful dissociation within business partnerships.
- Understand the principle of wrongful dissociation and its impact on both the partnership and the dissociated partner.