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Which of the Following Is True of the Liability to Creditors

Question 46

Multiple Choice

Which of the following is true of the liability to creditors in the process of continuation of a partnership?


A) Withdrawing partners are liable for new obligations though they have given a notice of withdrawal.
B) New partners are liable for prior obligations only to extent of contribution unless they agree to greater liability.
C) Continuing partners are the only people liable for prior obligations.
D) Withdrawing partners are liable for prior obligations even though they are released by novation.

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