Under the UPA, which of the following liabilities of a partnership has the highest priority for payment out of partnership assets? Amounts owing to:
A) partners for profits.
B) partners for loans or advances.
C) creditors other than partners.
D) partners for capital.

Question

Quizplus · Accepted Answer

Under the Uniform Partnership Act (UPA), the liabilities of a partnership are prioritized in a specific order for payment out of partnership assets. The highest priority is given to creditors other than partners. This means that external debts or obligations owed to non-partner creditors are settled first before any distributions are made to partners for loans, advances, capital contributions, or profit shares.

Under the UPA, Which of the Following Liabilities of a Partnership