Which of the Following Statements Is False Concerning Partnership Liquidating

question 39

Multiple Choice

Which of the following statements is false concerning partnership liquidating distributions?

• A)A partner who receives a liquidating distribution can retain an interest in the partnership.
• B)A partnership agreement may restrict the sale of a partnership making a liquidating distribution the only way a partner can close out his interest in the partnership.
• C)Liquidating a single partner's interest is similar in concept to a corporate redemption of a shareholder's interest.
• D)None of these statements is falsE.In contrast to operating distributions in which the partners retain a continuing interest in the partnership, liquidating distributions terminate a partner's interest in the partnership.See discussion on liquidating distributions in text.

---

Definitions:

Neolithic Period

A prehistoric time characterized by the development of agriculture, the creation of settled communities, and the use of polished stone tools.

Plant Domestication

The process by which wild plants have been evolved into crop plants through artificial selection and genetic modification by humans, often to enhance traits like yield, taste, and resilience.

Coding System

A method used for categorizing, labeling, or encoding information for easy identification, organization, and retrieval.

Inca

A South American indigenous empire with an advanced society, thriving in what is now Peru from the 13th to the 16th century until the Spanish conquest.