Exam 39: Partners Dissociation and Partnerships Dissolution and Winding up

A) He may perform the winding up.
B) He may demand the partnership be dissolved.
C) He is not entitled to the value of any of his partnership interest.
D) He is entitled to his share of the partnership interest; minus the damages he caused the partnership.

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A) within 90 days from the date of demand.
B) within 120 days from the date of demand.
C) within no such specified period.
D) within such time as per the terms and conditions of the partnership.

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B

A) Entering into new contracts made after the dissolution
B) Disposing of the partnership's excess supplies
C) Making a contract to audit the financial records of a new client
D) Borrowing money in the name of the partnership

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A) wrongful dissociation has occurred.
B) dissolution has occurred.
C) the assets of the partnership have been distributed.
D) the winding up process has begun.

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True

A) The partnership may wait to buy out the partner until the end of the partnership's term.
B) The buyout price must deduct the interest from the date of dissociation.
C) The dissociated partner cannot ask the court to determine the buyout price.
D) The partner must be paid in cash within 120 days.

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A) A partner retires at age 70 when the partnership agreement allows partners to retire at age 60
B) A partner assigns his partnership assets to a personal creditor
C) A judicial dissociation due to a partner's persistent and substantial use of partnership property for his own benefit
D) Death of a partner

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A) A partner's filing a bankruptcy petition
B) A partner's retirement at age 60 when the partnership agreement requires the partners to retire at age 70
C) A partner's willful and persistent breach of the partnership agreement
D) Death of a partner

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A) Losses from sale of partnership assets during winding up are not charged against a partner's capital account.
B) Partners are given the gross amount existing in their capital accounts.
C) On account of negative balance in a partner's account, other partners are under no obligation to contribute to set off the shortage.
D) If partnership creditors cannot be paid from the partnership assets, the creditors may proceed against the partners' capital accounts.

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A) Payment to partners to the extent of their capital contributions.
B) Payment to creditors of the partnership.
C) Payment to partners to the extent of their share of profits.
D) Payment to creditors after charging the partners' shares of losses.

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A) if all the partners consent to it.
B) if there is an agreement.
C) if there is a court order.
D) by novation.

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True

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A) First to creditors who are not partners, then to creditors who are partners
B) First to all creditors, then to partners as per their capital accounts
C) First to partners per their capital accounts, then to all creditors
D) First to partners who have made loans to the partnership, then to all other creditors

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A) beyond the partnership assets.
B) upto the extent of the partnership assets.
C) as per the partnership rules & regulation.
D) as per the demand of the partner.

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A) It is a partner's right to dissociate himself from the partnership.
B) A partner has the power to dissociate from the partnership at any time.
C) When a partner's dissociation violates the partnership agreement, it is nonwrongful dissociation.
D) Consequences of wrongful and nonwrongful dissociations are always the same.

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A) The continuing partners must release Paul from liability on the debt.
B) Paul must not secure his release from Ace.
C) Paul has to contribute toward the debt as early as possible.
D) The continuing partners should volunteer to set off Paul's liability.

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