Which of the following is TRUE of the assets of a partnership?
A) The partner who is more actively involved in the daily business affairs is considered to be the sole owner of the partnership's assets.
B) Any new assets purchased by the partnership are jointly owned by each partner.
C) When a partner contributes a particular asset to the firm, he is considered to be the sole owner of the asset.
D) In the case of the liquidation of a partnership, the partners must be paid based on the profit sharing ratio of the partnership.

Question

Quizplus · Accepted Answer

In a partnership, all assets are jointly owned by the partners, including any new assets purchased by the partnership. Each partner has equal ownership rights to the partnership's assets, regardless of their level of involvement in the business. In the case of liquidation, the partners are entitled to a share of the assets based on the profit-sharing ratio of the partnership. Option A and C are not true as no partner has sole ownership rights to any assets of a partnership.

Which of the Following Is TRUE of the Assets of a Partnership