Asked by
Lauren Hancock
on Nov 21, 2024
Verified
If the bank loan cannot be paid off after sale of the partnership assets, who is liable for the remainder of the loan?
A) No one is liable for the remainder of the loan because the partnership is dissolved.
B) The debt is automatically split between Ava and Hiro.
C) All three partners equally, but Ava may not pay Milton's share of the debt.
D) All three partners equally, but Ava may pay Milton's share of the debt.
E) Ava, if she continues the partnership after dissolution.
Partnership Assets
Properties, resources, or financial investments owned jointly by partners in a business partnership.
Partnership Dissolution
The formal termination of a partnership agreement, leading to the distribution of assets and settlement of debts among partners.
Partnership Debts
Financial obligations for which all partners in a business partnership are jointly and severally responsible, regardless of an individual partner's contribution to the debt.
- Pinpoint the legislative criteria for the dissolution process, final settlement, and termination of a partnership.
- Grasp the process and prioritization in paying debts and distributing assets upon partnership dissolution.
Verified Answer
CD
Learning Objectives
- Pinpoint the legislative criteria for the dissolution process, final settlement, and termination of a partnership.
- Grasp the process and prioritization in paying debts and distributing assets upon partnership dissolution.