Abby,Igor,Ted,and Tim were operating a restaurant in partnership.Ted received a letter from his university offering him an opportunity to teach the other students.Since,Ted always wanted to teach,he left the partnership.The partnership firm wanted to announce that Ted was no longer their partner since Ted had been handling a lot of purchases and dealing with some big customers.Which of the following statements could they file in order to do so?
A)Statement of partnership authority
B)Statement of dissolution
C)Statement of dissociation
D)Statement of denial
E)Statement of liquidation

Question

Quizplus · Accepted Answer

A statement of dissociation is used to announce that a partner has left the partnership, which is the case with Ted in this scenario. This statement would inform the public, customers, and suppliers that Ted is no longer part of the partnership, and the partnership is not responsible for any actions taken by Ted after his dissociation. A statement of partnership authority deals with describing the partner's roles and responsibilities, a statement of dissolution is used to announce a partnership's closure, a statement of denial is used when a partner denies certain actions or allegations made against them, and a statement of liquidation is used to inform stakeholders about the partnership's assets and liabilities after its closure.

Abby,Igor,Ted,and Tim Were Operating a Restaurant in Partnership