To Ensure That a Dissolving Partner Does Not Create Additional

question 17

Multiple Choice

To ensure that a dissolving partner does not create additional liability for the partnership, which of the following is true regarding notice to be provided to a third party that has provided credit to a partnership?

• A) There is no requirement that notice be provided because by law, the dissolving partner has no authority to bind the partnership.
• B) The third party may be notified through advertisement in the newspaper.
• C) The third party may be notified through a general post on the Internet at the partnership's website.
• D) The third party must be provided direct verbal or written notice.
• E) The third party must be provided written notice based on the statute of frauds.

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Definitions:

Management By Exception

A management strategy where only significant deviations from set standards or objectives are brought to the attention of management.

Strategic Marketing Process

A systematic approach to identifying and achieving long-term marketing goals through careful planning and execution.

Business Judgment Rule

The reluctance of the court to interfere with decisions of a board of directors.

Corporate Information

Data and details related to the operations, management, and financial status of a company.