Emily is one of three partners in Fast Work,a commercial janitorial service. With respect to Emily's interest in the firm,when she dies,her heirs are most likely entitled to
A)nothing.
B)a payout of Emily's capital contribution without more.
C)the buyout price paid by the firm for the interest.
D)one-third of the value of the interest.

Question

Quizplus · Accepted Answer

As a partner in a firm, Emily likely had a partnership agreement in place. This agreement would outline the terms for what happens to her interest in the firm upon her death. If the partnership agreement includes a buy-sell provision, then the firm may be required to buy out Emily's interest at a predetermined price. In this case, Emily's heirs would be entitled to the buyout price paid by the firm for her interest.

Emily Is One of Three Partners in Fast Work,a Commercial