A partner assigned his partnership interest to a third party.Which statement best describes the legal ramifications to the assignee?
A)The assignment of the partnership interest does not entitle the assignee to partnership assets upon a liquidation.
B)The assignment dissolves the partnership.
C)The assignee has the right to share in the management of the partnership.
D)The assignee does not become a partner but has the right to share in future partnership profits and to receive the proper share of partnership assets upon liquidation.

Question

Quizplus · Accepted Answer

When a partner assigns his or her partnership interest, the assignee does not become a partner but gains the right to share in future partnership profits and to receive the proper share of partnership assets upon liquidation. The assignment does not entitle the assignee to share in the management of the partnership, nor does it dissolve the partnership.

A Partner Assigned His Partnership Interest to a Third Party