Hugh is a limited partner and Ida is a general partner in HI Volume,a limited partnership.Joy is one of HI Volume's creditors.On HI Volume's dissolution,the party whose rights have the first priority to the firm's assets is

Question

Hugh is a limited partner and Ida is a general partner in HI Volume,a limited partnership.Joy is one of HI Volume's creditors.On HI Volume's dissolution,the party whose rights have the first priority to the firm's assets is​

Quizplus · Accepted Answer

In a limited partnership, the general partner(s) (in this case, Ida) typically have unlimited liability and are responsible for the partnership's debts and obligations. As a creditor of HI Volume, Joy would have the first priority to the firm's assets upon dissolution, ahead of both the general and limited partners. Hugh's and Ida's rights to the firm's assets would only come into play after all creditors (like Joy) have been paid off. Therefore, the correct answer is D.

Hugh Is a Limited Partner and Ida Is a General