Gas, LP, is a limited partnership to which its partners have contributed capital. Gas's creditors include Piping, Inc. On Gas's dissolution, its assets will be distributed to pay

Question

Quizplus · Accepted Answer

In a limited partnership, the general partners have unlimited liability and the limited partners have limited liability. Piping, Inc. is a creditor and therefore has a claim on the assets of the partnership before the partners. So, on Gas's dissolution, its assets will be distributed first to pay Piping, Inc. before distributing to the partners. Hence, choice C is correct.

Gas, LP, Is a Limited Partnership to Which Its Partners