When a General Partner's Capital Interest in a Service Partnership

question 19

True/False

When a general partner's capital interest in a service partnership is retired, liquidating distributions can include payment for goodwill and unrealized receivables if the partnership agreement so specifies.

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Definitions:

Passive Margin

The transition between oceanic and continental crust that is not an active plate boundary, typically characterized by a broad continental shelf and little seismic activity.

Island Arc

An island arc is a type of archipelago, composed predominantly of a series of volcanoes, which arcs roughly parallel to the boundary of oceanic tectonic plates that are being subducted beneath lighter continental plates.

Continental Rifting

The process by which a continent stretches and splits along a rift zone, potentially leading to the formation of a new ocean basin.

Passive Margin

A continental margin that is not associated with plate boundaries and hence experiences little seismic activity.