AICPA Exam CPA-Business Topic 1 Question 2 Discussion

Actual exam question for AICPA's CPA-Business exam

Question #: 2
Topic #: 1

The partners of College Assoc., a general partnership, decided to dissolve the partnership and agreed that none of the partners would continue to use the partnership name. Under the Revised Uniform Partnership Act, which of the following events will occur on dissolution of the partnership?

AOption A

BOption B

COption C

DOption D

Show Suggested Answer

Suggested Answer: C

Choice "c" is correct. "No - Yes."

Rule: Upon the dissolution of the partnership, each of the partners continues to have liability for partnership debts. Upon dissolution of the partnership each of the partners will continue to have apparent authority. The apparent authority of a partner can only be negated upon proper notice to third parties.

Choices "a", "b", and "d" are incorrect, per the above rule.

by Maile at May 03, 2022, 06:06 AM

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