Under a General Partnership, who has first priority in the event of liquidation of assets?
A) Partner creditors
B) Partners, according to profits
C) Partners, according to capital contributions
D) Outside Creditors

Question

Quizplus · Accepted Answer

In the event of liquidation of assets, outside creditors have first priority to get paid. After that, any remaining assets are used to pay off partner creditors and then partners according to their capital contributions. Profits are not relevant in the distribution of assets during liquidation.

Under a General Partnership, Who Has First Priority in the Event