The process of liquidating a partnership's assets and distributing the proceeds to satisfy claims against the partnership is known as winding up.

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This statement is true. When a partnership is dissolved, the partnership's assets are liquidated, and the proceeds are used to pay off any outstanding debts or obligations to creditors. The remaining proceeds are then distributed among the partners according to their ownership interests in the partnership. This process is known as winding up.

The Process of Liquidating a Partnership's Assets and Distributing the Proceeds