If a Limited Partnership Is Dissolved, the Order in Which

question 80

Multiple Choice

If a limited partnership is dissolved, the order in which the limited partnership's assets are distributed is as follows:

• A) Payment to partners who have loaned the partnership money, payment to third-party creditors, payment to the partners according to their investments in the partnership, and payment to the partners on the basis of their shares of the profits.
• B) Payment to partners who have loaned the partnership money, payment to the partners according to their investments in the partnership, payment to third-party creditors, and payment to the partners on the basis of their shares of the profits.
• C) Payment to third-party creditors, payment to the partners according to their investments in the partnership, payment to partners who have loaned the partnership money, and payment to the partners on the basis of their shares of the profits.
• D) Payment to third-party creditors, payment to partners who have loaned the partnership money, payment to the partners according to their investments in the partnership, and payment to the partners on the basis of their shares of the profits.
• E) Payment to the partners on the basis of their shares of the profits, payment to third-party creditors, payment to partners who have loaned the partnership money, and payment to the partners according to their investments in the partnership.

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Definitions:

Goods X

An unspecified product or commodity that is the subject of economic analysis or transaction.

Goods Y

A reference to a particular class or type of goods, often used in economic models.

Diminishing Marginal Rate

The Decline in the additional output produced when a new unit of input is added, with all other inputs held constant.

Substitution

The economic concept where consumers replace more expensive items with less costly alternatives, or firms replace inputs with more economical options.