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:

Union

A worker association that bargains with employers over wages and working conditions.

Employed

The state of having paid work; a person who performs work for wages or salary in a part-time or full-time position.

AFL-CIO

The American Federation of Labor and Congress of Industrial Organizations, a federation of labor unions in the United States.

Manufacturing Firms

Companies involved in the transformation of raw materials, components, or parts into finished goods that meet a consumer's demand or specifications.