Which of the following is most likely to be indicated by a description that includes triggering events, how each event is to be handled, and a valuation of assets?
A) a change of partnership clause in a partnership agreement
B) a profit distribution clause in a partnership agreement
C) a capital contribution clause in a partnership agreement
D) a dissolution clause in a partnership agreement

Question

Quizplus · Accepted Answer

A dissolution clause in a partnership agreement typically includes triggering events that can lead to the dissolution of the partnership, specifies how each event is to be handled, and includes a valuation of the partnership's assets in order to distribute them fairly among the partners. The other clauses listed do not typically include these elements.

Which of the Following Is Most Likely to Be Indicated