197k views
5 votes
The marshaling of assets provisions of the Uniform Partnership Act deal with the order in which assets are realized during the liquidation of a limited liability partnership.

True
False

1 Answer

3 votes

Final answer:

The statement is true as the marshaling of assets in the Uniform Partnership Act refers to the prioritization of satisfying partnership debts before distributing any remaining assets to partners during the liquidation of a limited liability partnership.

Step-by-step explanation:

The statement that the marshaling of assets provisions of the Uniform Partnership Act deal with the order in which assets are realized during the liquidation of a limited liability partnership is True. Marshaling of assets is a legal principle that establishes the order in which assets are to be applied to the discharge of obligations. In the context of partnership law, it generally refers to the process whereby partnership assets are used first to satisfy the debts of the partnership before any distributions are made to the partners. During the liquidation of a limited liability partnership (LLP), creditors have priority over the partners in the distribution of assets. Following this, any remaining assets will be distributed to the partners according to their respective interests in the partnership.

User Phayes
by
8.0k points