Final answer:
The statement is false because cash payments during the liquidation of a limited liability partnership are not always made in the income-sharing ratio; they depend on the partnership agreement or final settlement terms.
Step-by-step explanation:
The statement that all cash payments to partners during the liquidation of a limited liability partnership are made in the income-sharing ratio is false. Cash payments during the liquidation of a partnership are generally made based on the liquidation agreement, which may differ from the income-sharing ratio. The liquidation process involves paying off all the partnership debts and distributing the remaining assets to the partners. Payments are often made in accordance with the partnership agreement or the final settlement agreed upon by the partners, which considers the contributions made by each partner and the partnership's liabilities.
In the context of a limited liability partnership, while the partners' liabilities are limited to their investment in the company, this does not dictate the manner in which liquidation distributions are made. Each partner may receive a share of the remaining assets after all debts have been paid, but this is not necessarily related to the income-sharing ratio. The distributions could be based on the partner's capital account balances, initial investment, or other criteria as determined by the partnership agreement or relevant laws.