Dissolution of a Partnership Takes Place, Unless Otherwise Provided for by Contract

question 327

Multiple Choice

Dissolution of a partnership takes place, unless otherwise provided for by contract, in the following instances except:

• A) bankruptcy of a partner
• B) withdrawal of a partner
• C) change in financial condition of a partner
• D) death of a partner
• E) all of the other choices would require dissolution

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Definitions:

Misappropriation

The illegal, unethical, or unauthorized use of someone else's property or funds, especially for one's own use or benefit.

Short-swing Profits

Profits earned by corporate insiders from the purchase and sale, or sale and purchase, of company stock within a six-month period, which are subject to recovery by the corporation under specific regulations.

Tippees

Individuals who receive confidential information about a company and use it for stock trading, often illegally.

Corporate Insiders

Individuals within an organization, such as directors, officers, or major shareholders, who have access to private information about the company.