Smarth, King, and Finkel have been partners for years, but a court of equity is now segregating and considering separately the assets and liabilities of the partnership and the respective assets and liabilities of the individual partners. This process is called:
A) marshaling of assets.
B) liquidation.
C) dissolution of the partnership.
D) winding up.

Question

Quizplus · Accepted Answer

Marshaling of assets is the process where a court of equity segregates and considers separately the assets and liabilities of a partnership and the respective assets and liabilities of the individual partners. This is done to ensure that creditors can satisfy their claims in an orderly manner.

Smarth, King, and Finkel Have Been Partners for Years, but a Court