Dissolution and Winding Up of Partnerships

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Questions and Answers

Which one of the following statements is true about dissolution and winding up of a partnership?

Dissolution and winding up are the same thing.
Winding up involves the distribution of assets to partners.
Dissolution and winding up both involve a change in the relationship among partners. (correct)
Dissolution terminates the partnership immediately.

What happens to the legal personality of a partnership upon dissolution?

It is immediately terminated.
It is distributed among the partners.
It continues until the winding up is complete. (correct)
It is transferred to the partners.

When does the distribution of assets to partners occur in a partnership?

During partition or distribution. (correct)
During winding up.
During dissolution.
During termination.

What does dissolution of a partnership result in?

Continuation of the partnership with a change in the relationship among partners. (D) Signup and view all the answers

When does the winding up of a partnership's affairs occur?

After the distribution of assets to partners. (C) Signup and view all the answers

What is the difference between dissolution and winding up of a partnership?

Dissolution is the change in the relation of the partners, while winding up is the complete termination and distribution of the partnership's assets. Signup and view all the answers

Does the dissolution of a partnership immediately result in the termination of its legal entity?

No, the dissolution of a partnership does not immediately terminate its legal entity. Signup and view all the answers

What happens to a partnership after it has been dissolved?

After dissolution, the partnership continues to exist until its termination. Signup and view all the answers

When should the winding up of a partnership's affairs be completed?

The winding up of a partnership's affairs should be completed at the time of its termination. Signup and view all the answers

At what point are the net partnership assets partitioned and distributed to the partners?

The net partnership assets are partitioned and distributed to the partners at the time of the partnership's termination. Signup and view all the answers