This type of liquidation requires that all assets be realized before a distribution is made to partners, thus avoiding the possibility of a premature distribution.

Question

Quizplus · Accepted Answer

Lump Sum liquidation requires that all assets be realized and converted into cash before any distribution is made to partners, ensuring that distributions are not made before all assets are accounted for. This process helps in avoiding premature distributions that could occur if assets were distributed before being fully liquidated.

This Type of Liquidation Requires That All Assets Be Realized