Which of the Following Is True About Asset Distribution in an LLP

question 88

Multiple Choice

Which of the following is true about asset distribution in an LLP?

• A)If the LLP has been profitable,each partner will receive the net amount in his capital account.
• B)The partners have liability for partnership obligations beyond the firms' assets.
• C)An LLP partner has to contribute an amount equal to the negative balance in his account to pay creditors.
• D)The creditors must sue the partner to force the partner to pay the debt.

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Definitions:

Price Change

A variation in the cost of a good or service over time, influenced by factors like supply, demand, and inflation.

More Elastic

Describes a situation where the demand or supply for a good or service is highly responsive to changes in price.

Less Elastic

Describes a situation where the demand or supply for a product or service is relatively unresponsive to changes in price.

Perfectly Inelastic

A situation where the demand or supply for a good does not change in response to changes in price.