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 or advances.
C) partners for capital.
D) creditors other than partners.

Question

Quizplus · Accepted Answer

Under the Uniform Partnership Act (UPA), the liabilities of a partnership are prioritized for payment out of partnership assets in a specific order. The highest priority is given to creditors other than partners, meaning that debts owed to external creditors must be settled before any distributions are made to partners for profits, loans, advances, or capital contributions.

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