Asked by Andrew Allen on Jun 26, 2024
Verified
Under the RUPA, dissolution occurs automatically upon the happening of an event specified in the partnership agreement as resulting in dissolution. The partners may not agree to continue the business.
Dissolution
The process of formally ending or dissolving an organization, marriage, or legal body.
RUPA
The Revised Uniform Partnership Act, legislation that outlines the laws governing partnerships, focusing on the relationships between partners and with third parties.
Partnership Agreement
A legal document that outlines the roles, responsibilities, and profit-sharing among partners in a business partnership.
- Comprehend the implications of partnership dissolution and how it differs from termination.
Verified Answer
_S
_Dear SandyJun 26, 2024
Final Answer :
False
Explanation :
Under the RUPA (Revised Uniform Partnership Act), even if an event specified in the partnership agreement as causing dissolution occurs, the partners can unanimously agree to continue the business, thereby preventing automatic dissolution.
Learning Objectives
- Comprehend the implications of partnership dissolution and how it differs from termination.