Absent an agreement otherwise,upon dissolution,a partner is entitled to which of the following after payment of partnership creditors?
A) A share of profits in proportion to capital contribution
B) A share of profits based on the degree of participation in management
C) Under the UPA,repayment of his capital contribution during the winding up of the firm
D) The UPA requires that the partners have an agreement or else they must seek a court order distributing the remaining assets

Question

Quizplus · Accepted Answer

Under the Uniform Partnership Act (UPA), upon dissolution, a partner is entitled to receive repayment of their capital contribution after payment of partnership creditors. The UPA does not provide for a share of profits in proportion to capital contribution or based on participation in management. While partners are encouraged to have an agreement in place regarding distribution of assets upon dissolution, the UPA does provide default rules to follow in the absence of an agreement. Therefore, choice D is also incorrect.

Absent an Agreement Otherwise,upon Dissolution,a Partner Is Entitled to Which