CHAPTER 33—DISSOLUTION OF A PARTNERSHIP Key
1. Which of the following best describes a dissolution of a partnership?
2. A withdrawing partner is entitled to:
3. Which of the following are justifiable reasons for a court to decree a partnership as dissolved?
4. When one partner is declared insane by a court:
5. When one partner dies, the other partners are entitled to:
6. Brothers Inc., a partnership firm, consisted of three partners Jim, Mark, and Jake. However, Jim was declared
bankrupt by the court and the company suffered considerable losses during the same time. Which of the
following is likely to be true in this scenario?
7. Which of the following is true regarding notice of a partnership’s dissolution?
8. Once a partnership is dissolved, assets are distributed:
9. A partnership can be dissolved at anytime by the partners with mutual consent.
10. The withdrawal of one partner at any time does not dissolve the partnership.
11. In a partnership for a definite term, any partner has the right to withdraw at any time.
12. A partner may obtain a decree of dissolution when a court declares another partner insane or of unsound
mind.
13. A temporary inability of one partner to perform duties constitutes as incapacity.
14. One partner can compel the other members to assume continued losses after the success of the business
becomes highly improbable.
15. A representative of a deceased partner may act as a temporary partner.
16. Bankruptcy of a partnership does not terminate it.
17. Dissolution of partnership relieves the partners of their duties to each other.
18. Notice of dissolution of a partnership is not necessary to third persons who have done business with the
firm.
19. Partners who have incurred liabilities on behalf of a firm are entitled to reimbursement.
20. Explain how a court dissolves a company on basis of futility.