Which of the Following Is True When Upon Dissolution of a Partnership

question 7

Multiple Choice

Which of the following is true when upon dissolution of a partnership one partner pays liabilities of the partnership that are greater than the liquidated assets of the partnership?

• A) The partner who paid has a right of contribution against any partner who did not pay.
• B) The partner who paid has no right of contribution against any other partner.
• C) The partner who paid has a right of contribution against other partners only if the partner who paid was not the managing partner.
• D) The partner who paid has a right of contribution only against other partners who participated in the management of the partnership.
• E) The partner who paid has a right of contribution only against other partners who did not participate in the management of the partnership.

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Definitions:

External Users

Individuals or entities outside a company who use its financial information, such as investors, creditors, and regulatory agencies.

Financial Information

Data regarding the financial status of an entity, including income, expenses, assets, and liabilities.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a specific period.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.