Bev is one of three partners in Commercial Custodial. With respect to Bev's interest in the firm, when she dies, her heirs are most likely entitled to
A) nothing.
B) a payout of her capital contribution without more.
C) the buyout price paid by the firm for the interest.
D) one-third of the value of the interest.

Question

Quizplus · Accepted Answer

As a partner, Bev most likely has a buy-sell agreement with her partners or the partnership agreement may specify what happens in the event of her death. The buyout price paid by the firm for Bev's interest is the most common way for partners in a business to compensate the estate of a deceased partner for their share of the business. Therefore, her heirs are most likely entitled to the buyout price paid by the firm for her interest.

Bev Is One of Three Partners in Commercial Custodial