Gas, LP, is a limited partnership to which its partners have contributed capital. Gas's creditors include Piping, Inc. On Gas's dissolution, its assets will be distributed to pay Select one: a. Piping before the partners. b. the partners before Piping. c. the partners and Piping proportionately. d. neither Piping nor the partners.

Question

Keyon Coleman

Business

13 November, 17:00

Gas, LP, is a limited partnership to which its partners have contributed capital. Gas's creditors include Piping, Inc. On Gas's dissolution, its assets will be distributed to pay Select one: a. Piping before the partners. b. the partners before Piping. c. the partners and Piping proportionately. d. neither Piping nor the partners.

+3

Answers (1)

Know the Answer?

Aspen · Answer 1

a. Piping before the partners

Explanation:

The dissolution of a partnership refers to the process by which the business relationship of partners is terminated. After dissolution, the business firm created by the partners ceases to exist. The process involves disposing and discarding of the firm's assets and settlement of liabilities.

In the dissolution process, once the assets have been disposed of, the debts are settled first. In a limited partnership, the partners enjoy limited liability to the obligation of the business. If the assets of the business are not sufficient to meet all the obligations, the partner's liability is only to the extent of their capital contribution.