At the start of a liquidation, this document provides guidance for all payments made to the partners throughout the liquidation.

Question

Quizplus · Accepted Answer

The predistribution plan outlines the order in which payments will be made to the partners during the liquidation process. It takes into account the safe and deficit capital balances of each partner and ensures that all partners are treated fairly and receive their appropriate share of the remaining assets. The schedule of liquidation may provide a timeline for the process, but it does not specifically address partner payments. Safe and deficit capital balances may also be relevant, but alone they do not provide guidance for payment distribution. Thus, the best option is C, the predistribution plan.

At the Start of a Liquidation, This Document Provides Guidance