Final answer:
The statement is false because creditors must be paid before partners receive cash distributions in the liquidation of a limited liability partnership, even if there are expected gains from noncash assets.
Step-by-step explanation:
The statement that partners may receive cash from a limited liability partnership before creditors if the noncash assets of the partnership are expected to realize a gain is false. In a liquidation scenario, the laws governing business dissolution prioritize the payment of creditors over the distribution of assets to partners or owners. This is to ensure that those who the business owes money (creditors) are paid before any assets are distributed amongst the owners. Even if the noncash assets are expected to realize a gain, the gains would first go towards satisfying creditors' claims before any remaining value is returned to the partners.
Failing to adhere to this order can result in legal consequences for the partners, as the rights of the creditors take precedence in liquidation proceedings. It is also pertinent to note that limited liability structures protect personal assets, but do not change the requirement to pay creditors before partners in a liquidation scenario.