Final answer:
In the installment liquidation of a limited liability partnership, the first partner to receive cash after liabilities have been paid is the partner with the largest capital account balance.
Step-by-step explanation:
The question pertains to the process of installment liquidation of a limited liability partnership (LLP). In the context of LLPs, the distribution of cash after the payment of all partnership liabilities follows a structured priority order. When it comes to installment liquidation, the first partner to receive cash is the one with the largest capital account balance. This reflects the residual interest each partner has in the partnership after all liabilities, including those to external creditors and loans made by partners to the partnership, have been settled.
A key concept to understand here is that in a limited liability partnership, partners are only liable to the extent of their investment in the business. They do not put their personal assets at risk beyond their contribution to the partnership. This differs from a general partnership where each partner could be personally liable for the business's debts, potentially risking personal assets. On the other hand, corporations allow shareholders to benefit from limited liability, where their risk is also limited to their investment in the company. In addition, corporations may have more opportunities to raise capital, such as through the selling of stock.