Which of the Following Is True with Respect to the Distribution

question 46

Multiple Choice

Which of the following is true with respect to the distribution of assets following dissolution of a limited partnership?

• A) Partners are paid before ex-partners for unpaid distributions.
• B) Limited partners who are creditors are paid at the same priority as third-party creditors of the partnership.
• C) The amount limited partners are paid for their partnership interests has no relation to the proportion in which they share in distributions.
• D) Capital contributions are paid before unpaid distributions.

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Definitions:

Months

Units of time into which a year is divided, normally consisting of 28 to 31 days.

Deposit

A sum of money placed or kept in a bank account, usually to gain interest.

Interest

The charge for borrowing money or the return on investment of saved funds.

Months

Units of time, each approximately 30-31 days long, used to measure durations and periods in the calendar year.