Which of the Following Is True When Upon Dissolution of a Partnership

question 7

Multiple Choice

Which of the following is true when upon dissolution of a partnership one partner pays liabilities of the partnership that are greater than the liquidated assets of the partnership?

• A) The partner who paid has a right of contribution against any partner who did not pay.
• B) The partner who paid has no right of contribution against any other partner.
• C) The partner who paid has a right of contribution against other partners only if the partner who paid was not the managing partner.
• D) The partner who paid has a right of contribution only against other partners who participated in the management of the partnership.
• E) The partner who paid has a right of contribution only against other partners who did not participate in the management of the partnership.

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Definitions:

Diffuse Costs

Diffuse costs are expenses that are spread out and not easily attributed to a single product, project, or activity, often indirect in nature.

Unintended Consequences

Outcomes that are not the ones foreseen or intended by a purposeful action.

Domestic Clothing Factories

Factories located within a country's borders that manufacture clothing and apparel for local consumption or export.

Overseas Operations

Business activities or processes conducted in foreign countries outside of a company's home country.