In the Final Step of the Liquidation Process, Remaining Cash

question 57

Multiple Choice

In the final step of the liquidation process, remaining cash is distributed to partners

• A) on an equal basis.
• B) on the basis of the profit ratios.
• C) on the basis of the remaining capital balances.
• D) regardless of capital deficiencies.

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Definitions:

Unification

Unification refers to the process of making or becoming unified or whole, often by bringing together previously separate parts or entities.

Private Law

Law that involves suits between private individuals or groups.

Trust Corpus

The principal amount of assets held in a trust, as distinguished from the income generated by those assets.

Trustee

(1) In a bankruptcy proceeding, an individual who takes over administration of a debtor’s estate. (2) A person who operates a business trust for beneficiaries.