Fact Pattern 27-3
Bryn, Cornell, and Duke are general partners in Equity Lending, a consumer credit, mortgage, and investment firm. Their agreement states that it is a breach of the agreement for any partner to assign his or her interest to a creditor without the consent of the other partners.
-Refer to Fact Pattern 27-3. The partners decide to dissolve Equity Lending. Duke collects and distributes the firm's assets. This results in
A) nothing with respect to the firm's existence.
B) the continuation of the firm's business.
C) the termination of the firm's legal existence.
D) the temporary suspension of the firm's business.

Question

Fact Pattern 27-3
​Bryn, Cornell, and Duke are general partners in Equity Lending, a consumer credit, mortgage, and investment firm. Their agreement states that it is a breach of the agreement for any partner to assign his or her interest to a creditor without the consent of the other partners.
-Refer to Fact Pattern 27-3. The partners decide to dissolve Equity Lending. Duke collects and distributes the firm's assets. This results in
A) ​nothing with respect to the firm's existence.
B) ​the continuation of the firm's business.
C) ​the termination of the firm's legal existence.
D) ​the temporary suspension of the firm's business.

Quizplus · Accepted Answer

Once the partners have dissolved the firm and Duke has distributed its assets, the legal existence of the firm is terminated. This is because a partnership is not a separate legal entity from its partners, and therefore dissolution results in the termination of the partnership's legal existence.

Fact Pattern 27-3 ​Bryn, Cornell, and Duke Are General Partners in Equity Lending

Fact Pattern 27-3 Bryn, Cornell, and Duke Are General Partners in Equity Lending