Natural Gas,LP,is a limited partnership to which its partners have contributed capital. Natural Gas's creditors include Precision Piping,Inc. On Natural Gas's dissolution,its assets will be distributed to pay
A)the partners and Precision Piping proportionately.
B)the partners before Precision Piping.
C)Precision Piping before the partners.
D)none of the choices.

Question

Quizplus · Accepted Answer

When a limited partnership like Natural Gas dissolves, its assets will be used to first pay off its creditors, like Precision Piping, before any remaining funds are distributed to the partners. Therefore, Precision Piping would be paid before the partners in this scenario.

Natural Gas,LP,is a Limited Partnership to Which Its Partners Have