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

question 62

Multiple Choice

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

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

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Definitions:

Progressive

Pertaining to progressive politics or movements that advocate for reforms and policies aimed at addressing social inequalities and promoting social justice.

Regressive

Pertaining to a tax system where the tax rate decreases as the taxable amount increases, placing a higher relative burden on lower-income individuals.

Proportional

Relating to or denoting a relationship where a change in one quantity results in a corresponding proportional change in another quantity.

Federal Income Tax

A tax levied by the United States federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.