Partnership liquidation is not the same as partnership dissolution.

Question

Quizplus · Accepted Answer

Partnership liquidation is the process of winding up the partnership by selling its assets, paying off its liabilities, and distributing the remaining proceeds to the partners. Partnership dissolution, on the other hand, refers to the end of the partnership relationship, which may occur for various reasons such as death of a partner or expiration of a partnership agreement. While dissolution may lead to liquidation, it is possible for a partnership to dissolve without liquidating its assets, such as when one partner buys out the others.

Partnership Liquidation Is Not the Same as Partnership Dissolution