Fact Pattern 3-3
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 3-3.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 3-3
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 3-3.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

When a partnership dissolves, its legal existence terminates. Therefore, the distribution of Equity Lending's assets by Duke results in the termination of the firm's legal existence.

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