401E PQUIZ 5B Flashcards
The dissolution of the partnership does not of itself discharge the existing liability of any partner
TRUE
When a partner is expelled and the remaining partners continue the business either alone or with others without liquidation of the partnership affairs, creditors of the dissolved partnership are also creditors of the person or partnership continuing the business.
TRUE
When partnership property and the individual properties of the partners are in possession of a court for distribution, partnership creditors shall have priority on partnership property and separate creditors on individual property, saving the rights of lien or secured creditors.
TRUE
The top priority in application or payment out of partnership assets is the share of the profits, if any, due to each partner.
FALSE
When any partner retires or dies, and the business is without settlement of accounts, he or his legal representative as against the partnership the value of his interest ascertained at the date of dissolution.
TRUE
The deceased partner’s estate is not liable for any subsequent debts or losses incurred by the surviving partners who continued the partnership business without the consent of the estate.
FALSE
_In settling accounts, except if agreed otherwise, the assets of the partnership include the partnership property and contributions of the partners necessary to pay all liabilities, but excluding goodwill.
TRUE
Where a partnership contract is rescinded on the ground of fraud or misrepresentation, the injured partner is entitled to a lien on, or right of retention of, the surplus of the partnership property after satisfying the partnership liabilities to third persons for any sum of money paid by him for or advances contributed by him.
TRUE
The individual creditors of the deceased partners are to be preferred over partnership creditors with respect to the separate property of the said deceased.
TRUE
The individual property of a deceased partner shall be liable for his share of the contributions necessary to pay partnership debts incurred while he was a partner.
TRUE
The right to an account of his interest shall accrue to any partner, or his legal representative as against the winding up partners or the surviving partners or the person or partnership continuing the business, at the end date of winding up, in the absence of any agreement to the contrary.
TRUE
The law allows newspaper notification regarding the dissolution of the partnership is allowed as giving proper notice.
?
Who are the persons authorized to wind up the partnership?
- Person designated by the agreement of the partners
- Partners who have not wrongfully dissolved the partnership or did not act in bad faith.
- The legal representative of the surviving partner
