A Disproportionate Distribution Arises When the Partnership Distributes a Share

question 120

True/False

A disproportionate distribution arises when the partnership distributes a share of partnership hot assets to one or more partners that is not the same as the partner's ownership interest in the partnership.

---

Definitions:

Automatically Terminate

The cessation of a contract or agreement without any action required by the parties involved, typically triggered by predefined conditions being met.

Specific Subject Matter

A particular area of study, knowledge, or interest within a broader field or discipline.

Illegal

Activities or actions that are prohibited by law and subject to punishment, including civil or criminal penalties.

Consideration

Something of value that is exchanged between parties in a contract, which is necessary for the agreement to be legally binding.