Which Statement Is Correct in Describing the Rank Order of Payments

question 30

Multiple Choice

Which statement is correct in describing the rank order of payments as specified by the Uniform Partnership Act?

• A)Payments to partners are ranked equally,regardless of underlying basis.
• B)Payment to partners with excess capital balances may be placed ahead of payments to creditors.
• C)Payments to creditors other than partners are ranked ahead of payments to partners.
• D)After payments are made to other creditors and partners with loans to the partnership,payment up to the same amount can be made to partners with capital interests.

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Definitions:

Exhaustion Stage

The third stage of the general adaptation syndrome, which occurs if the organism fails in its efforts to resist the stressor.

Primary Appraisal

A cognitive evaluation of a potentially stressful event to determine whether its effect is positive, irrelevant, or negative.

Potential Stressor

Any event, situation, or condition that has the possibility to cause stress.

Primary Appraisal

The initial evaluation process where an individual assesses the significance of a stressor as irrelevant, benign-positive, or stressful.