Which of the following statements is false concerning partnership liquidating distributions?
A)A partner who receives a liquidating distribution can retain an interest in the partnership.
B)A partnership agreement may restrict the sale of a partnership, making a liquidating distribution the only way a partner can close out his interest in the partnership.
C)Liquidating a single partner's interest is similar in concept to a corporate redemption of a shareholder's interest.
D)None of these statements are false.

Question

Quizplus · Accepted Answer

A partner who receives a liquidating distribution cannot retain an interest in the partnership, as the purpose of a liquidating distribution is to completely terminate the partner's interest in the partnership.

Which of the Following Statements Is False Concerning Partnership Liquidating