Roberts,Smith,and Tomas have been partners for ten years.The partners,however,are now collecting debts,converting assets to cash,paying creditors,and distributing remaining assets to each partner.Roberts,Smith,and Tomas are engaged in:
A) dissolution.
B) marshaling assets.
C) reformation.
D) winding up.

Question

Quizplus · Accepted Answer

The partners are in the process of winding up their business, which involves collecting debts, selling assets, paying creditors, and distributing the remaining assets to each partner. Dissolution is the first step in winding up, but it is not the same as the entire process. Marshaling assets refers to the process of collecting and organizing assets, but it is not the same as winding up. Reformation is the act of changing or renewing something, and it is not applicable in this scenario.

Roberts,Smith,and Tomas Have Been Partners for Ten Years