7. Partnership - General Partnership Dissolution Flashcards Preview

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Flashcards in 7. Partnership - General Partnership Dissolution Deck (7):
1

Absent an agreement dealing with dissolution, when does a partnership dissolve?

Upon notice of the express will of any one partner to dissociate

2

What is the date of death of a partnership called?

Termination

3

What is the process between dissolution and termination called?

Winding up

4

What is the main task of the partners during winding up?

Liquidating assets to satisfy partnership creditors

5

Liability

What is a partnership's liability regarding old business?

Liable for transactions entered into the satisfy creditors who existed when winding up began

6

Liability

What is a partnership's liability regarding transactions entered into during winding up?

Liable until notice is given to creditors OR 90 days after statement of dissolution is filed with the state

7

Priority of Distribution

What are the three levels of priority?

1. Outside creditors and partners who LOANED money to partnership

2. Capital paid by partners must be returned / losses accrued must be paid in by partners

3. Surplus money, if any