In a Dissolution of a Partnership, If a Noncontinuing Partner

question 20

Multiple Choice

In a dissolution of a partnership, if a noncontinuing partner holds 20% of the partnership in which assets after the payment of debt are valued at $10,000, how much will the partner receive?

• A) $2,000
• B) $1,000
• C) $2,500
• D) $3,000
• E) Nothing

---

Definitions:

Misrepresentations

False or misleading statements that may lead someone to enter into a contract or make a decision under false beliefs, potentially with legal consequences.

Actual And Apparent Authority

Actual authority refers to the power a principal intentionally gives to an agent to act on the principal's behalf, while apparent authority exists when the principal's actions lead a third party to believe that an agent has certain powers, even if such powers have not been explicitly granted.

Zircon

A mineral belonging to the group of nesosilicates, often used in jewelry as a diamond simulant and in various industrial applications.

Liability

The legal obligation to answer for one's actions, chiefly in matters concerning debts or legal responsibilities.