Under the Uniform Partnership Act (UPA), Dissolution of a Partnership

question 52

Multiple Choice

Under the Uniform Partnership Act (UPA) , dissolution of a partnership is said to be by the operation of law when:

• A) the partnership is at will and a partner wants to leave the organization.
• B) the entire partnership becomes bankrupt.
• C) the term of the partnership agreement has expired.
• D) all the partners decide that it is preferable to dissolve than to continue.
• E) the partners decide to discharge a partner though no provision permits them to do so.

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Definitions:

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Acquired Goodwill

Represents the premium paid over the fair market value of assets during the acquisition of a company.

Outstanding Voting Shares

The total number of shares of a corporation that are held by shareholders and eligible to vote at shareholder meetings.

Fair Value

The market value of an asset or liability, based on the current price at which it can be sold or settled.