Dissolution and Terminating a Relationship

Question 1

T or F: Georgia allows for dissociation of individual partners

Answer 1

False, as a UPA state, it only allows for dissolution

Question 2

What happens if a partner withdraws, voluntarily or involuntarily?

Answer 2

The partnership is terminated

Question 3

Reasons a partnership may terminate

Answer 3

1. A partner dies
2. A partner goes bankrupt or is kicked out
3. If the other partner is an entity that goes bankrupt

Question 4

Two steps to dissolution

Answer 4

1. Dissolution
2. Winding up

Question 5

Three ways dissolution can be brought

Answer 5

1. By the partner themselves
2. Operation of law
3. Court order

Question 6

Winding up

Answer 6

Unwiding the business and settling accounts

Question 7

Partnership at-will

Answer 7

Open-ended partnership with no fixed termination tied to time or undertaking.

Gnerally, dissolved when a partner leaves

Question 8

Partnership for a term or an undertaking

Answer 8

May be dissolved when the term expires or when the undertaking is completed

Question 9

Who has the right to wind up?

Answer 9

1. Any partner who has not wrongfully removed themselves from the partnership
2. A legal representative of one of the partners
3. The court

Question 10

Priority of distributions

Answer 10

1. Non-partner creditors
2. Partner creditors
3. Partners, as members of the partnership