Which of the Following Is a Consequence of Failing to Give

question 34

Multiple Choice

Which of the following is a consequence of failing to give adequate notice of partnership dissolution to third parties?

• A) The partnership's attempted dissolution will be ineffective.
• B) The partners will be prevented from receiving their share of partnership assets.
• C) There will be a court-ordered waiting period before partners can receive their share of partnership assets.
• D) Partners might be personally liable for transactions entered into by other partners occurring after the partnership dissolution.

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Definitions:

Personal Assets

Assets owned by an individual as opposed to those owned by a business or an institution.

Transfer Agent

A trust company, bank, or similar financial institution assigned by a corporation to maintain records of investors, account balances and transactions, and to manage dividends and other disbursements.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing owners' claims on the company.

Financial Institution

An organization that provides financial services, such as banking, insurance, investment management, and loans to individuals, businesses, and governments.