A partner can withdraw from a partnership by any of the following means except:
A) Receiving assets from the partnership in the amount of his/her interest.
B) Selling his/her interest to another person for cash.
C) Receiving cash from the partnership in the amount of his/her interest.
D) Close the business and liquidate the assets under the mutual agency principle.
E) Selling his/her interest to another person in exchange for assets.

Question

Quizplus · Accepted Answer

The option "Close the business and liquidate the assets under the mutual agency principle" is a way to dissolve a partnership by agreement or by operation of law. It is not a means by which a partner can simply withdraw from a partnership. The other options listed provide ways for a partner to withdraw from a partnership by receiving assets or cash in exchange for their share of the partnership.

A Partner Can Withdraw from a Partnership by Any of the Following