Redrock GP has decided to go out of business.The sale of the partnership assets and the making of payments to creditors will occur during the ________ phase of the closing of a partnership.

Question

Quizplus · Accepted Answer

According to partnership law, when a partnership decides to go out of business, they must first go through the process of dissolution, which involves ending the partnership agreement and dividing the partnership assets. After dissolution, the partnership enters the winding up phase, where the partnership assets are collected, liquidated, and used to pay off outstanding debts to creditors. Finally, after all the debts have been satisfied, the partnership enters the termination phase, where the remaining assets are distributed among the partners. In this case, since Redrock GP has already decided to go out of business, they would be in the winding up phase where they would sell off their assets and make payments to creditors. Therefore, the best choice is C.

Redrock GP Has Decided to Go Out of Business