Under the UPA, Which of the Following Liabilities of a Partnership

question 22

Multiple Choice

Under the UPA, which of the following liabilities of a partnership has the highest priority for payment out of partnership assets? Amounts owing to:

• A) partners for profits.
• B) partners for loans or advances.
• C) creditors other than partners.
• D) partners for capital.

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Definitions:

Sandstone

A sedimentary rock composed mainly of sand-sized mineral particles or rock fragments.

Avalanche

A rapid flow of snow, ice, and possibly debris down a mountain slope, often triggered by factors like weather, temperature, and disturbances.

Imbricated Clasts

Rock fragments arranged in a way that they overlap each other like shingles on a roof, typical in sediment deposited by flowing water.

Earthquake

A sudden and violent shaking of the ground, often caused by movement within the Earth's crust or volcanic action.