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:

Inferential Statistics

The branch of statistics that aims to draw conclusions about a population based on a sample.

Variables

Any traits, factors, or quantities that can assume different values in a given study.

Z-scores

Z-scores are statistical measurements that describe a value's relationship to the mean of a group of values, expressed in terms of standard deviations.

Statistical Techniques

Methods or procedures used in the analysis of data to uncover patterns, test hypotheses, and estimate probabilities.