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:

Price Discrimination

The strategy of selling the same product to different customers at different prices, often based on their willingness or ability to pay.

Elastic Demand

A scenario in which a notable fluctuation in the demand for a product or service occurs due to a variation in its price.

Marginal Cost

The extra expense associated with making an additional unit of a product or service.

Hardcover Books

Books bound with rigid protective covers, often made of wood, cardboard, or similar materials, offering higher durability than paperback versions.