Which of the Following Occurs Upon Dissolution of a Partnership

question 34

Multiple Choice

Which of the following occurs upon dissolution of a partnership when liabilities of the partnership are greater than the liquidated assets of the partnership?

• A) The liabilities remain unpaid because the partners are not liable.
• B) The managing partner is liable for the liabilities, but other partners are not liable.
• C) Each partner must contribute his or her share of the losses to pay creditors.
• D) Only partners who did not participate in the management of the business must contribute his or her share of the losses to pay creditors.
• E) Only partners who participated in management of the business must contribute his or her share of the losses to pay creditors.

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Definitions:

For-Profit Higher Education

Educational institutions operated by private, profit-seeking businesses, often offering post-secondary degrees.

Tuition Payments

Financial charges paid to educational institutions for instruction and other services, often essential for enrollment and attendance.

Capitalist System

An economic system based on private ownership of the means of production and the creation of goods or services for profit.

Own Labor

A concept referring to the work performed by an individual that directly benefits themselves, typically not for an employer or for wages.