Under the UPA,which of the following liabilities of a partnership has the highest priority for payment out of partnership assets? Amounts owing to:
A) partners for profits
B) partners for loans and advances
C) nonpartner creditors
D) partners for capital

Question

Quizplus · Accepted Answer

Under the UPA, nonpartner creditors have the highest priority for payment out of partnership assets. This means that any debts owed to third parties, such as suppliers or lenders, must be paid in full before any distributions can be made to partners for profits or loans, or repayment of partners' capital contributions.

Under the UPA,which of the Following Liabilities of a Partnership