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) winding up.
D) dissolution of the partnership.

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 those of the individual partners. This ensures that creditors can be paid in an orderly manner and that the interests of all parties are fairly considered.

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