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1
Expulsion of a partner in accordance with the partnership agreement is generally considered a wrongful dissociation.
A)True
B)False
2
A partner who assigns his interest in the partnership to his son causes the partnership to dissolve.
A)True
B)False
3
During the windup process, assets of the partnership are usually liquidated and sold.
A)True
B)False
4
If a partnership is insolvent at the time of windup and partnership assets are insufficient to pay creditors, any of the partners may have his individual assets attached by the creditors.
A)True
B)False
5
After the partnership is dissolved and wound up, the partnership automatically terminates.
A)True
B)False
6
When a partner wrongfully causes the partnership to dissolve, he may have the right to demand and participate in wind-up of the business.
A)True
B)False
7
Partners may choose not to seek dissolution and winding up. When it is continued:
A)Remaining partners are generally relieved of liability of past partnership debts.
B)Outgoing partners are generally relieved of liability of past partnership debts.
C)Outgoing partners are generally relieved of liability of new partnership debts.
D)All of the above.
8
When the partnership is continued after dissolution of the partnership:
A)the remaining partners may be permitted to acquire the business during the wind-up phase.
B)creditors of the "old partnership" may no longer seek to hold the partners in the "new partnership" liable for any prior debts.
C)outgoing partners are automatically released from the debts of the "old partnership" provided that the remaining partners in the "new partnership" agree to release them.
D)incoming partners of the "new partnership" have unlimited personal liability for all debts of the "old partnership."
9
An outgoing partner's right to receive his proportionate interest in the partnership:
A)is usually valued at the time of dissolution.
B)includes the value of goodwill to the business, if the partner did not wrongfully cause the dissolution.
C)may include an immediate cash payment at the time of dissolution.
D)All of the above
10
When the partnership is continued, the partnership is required to:
A)Liquidate the assets of the business to cash and purchase new supplies and equipment.
B)Purchase the dissociated partner's partnership interest.
C)Notify the secretary of state.
D)All of the above.





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