Liquidating a partnership


15-Feb-2020 20:28

liquidating a partnership-73

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Dissolution serves as the beginning of the termination process for the partnership. During this phase, partnership accounts are settled and assets are liquidated.

Dissolution marks the end of business as usual for the partnership business. Winding up serves to end any outstanding legal and financial obligations of the partnership so that the business can be terminated.

Winding up is a process and will be conducted according to the partnership agreement and according to applicable state laws.

Once winding up is complete, the partnership is terminated. Partners can no longer be held responsible for other partner's debts, and partners can no longer obligate the partnership in any way.

For example, let's say that Dottie and Dave decide to open a clothing store. For example, if Dottie leaves the business but Dave remains, then there is a change in the partnership status and dissolution occurs.Following this lesson, you'll have the ability to: Did you know…We have over 160 college courses that prepare you to earn credit by exam that is accepted by over 2,000 colleges and universities.As a member, you'll also get unlimited access to over 70,000 lessons in math, English, science, history, and more.

Plus, get practice tests, quizzes, and personalized coaching to help you succeed.If your partnership is insolvent, consult a lawyer.



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