Asked by Jayleen Bocanegra on May 04, 2024
Verified
Landrum voluntarily assigns his transferable interest in a partnership to McClendon. This act does not by itself result in the dissolution of the partnership, nor does it result in McClendon's being entitled to participate in the management of the partnership business.
Dissolution
The process of legally dissolving a corporation or partnership, effectively bringing its existence to an end.
Transferable Interest
A stake or share in a property or enterprise that can be legally transferred from one party to another.
- Acquire knowledge about the situations in which partnerships are created, operated, and disbanded.
Verified Answer
AC
Athena CottrellMay 06, 2024
Final Answer :
True
Explanation :
Assigning a transferable interest in a partnership does not dissolve the partnership nor does it grant the assignee rights to participate in the management or affairs of the partnership; it merely transfers the assignor's share of the profits and losses and the right to receive distributions.
Learning Objectives
- Acquire knowledge about the situations in which partnerships are created, operated, and disbanded.