Final answer:
Upon Heidi's death, her heirs are generally entitled to receive the value of her economic interest in the general partnership, not a direct transfer of assets or operation rights. This includes her share of profits and other distributions after settling debts and liabilities.
Step-by-step explanation:
Upon the death of a partner in a general partnership, the rights and obligations toward the partnership estate of the deceased partner are typically addressed in the partnership agreement and by law. In the absence of specific provisions within the partnership agreement that dictate a different outcome, under the Uniform Partnership Act, which many jurisdictions follow, the death of a partner generally results in the dissolution of the partnership.
In regard to the options provided, it is not true that all the partnership assets transfer to Heidi's heirs, nor do they receive anything. Heidi's heirs do not directly acquire her management or operation rights within the partnership, nor do they automatically own a quarter of the assets.
Rather, they have the right to receive the value of Heidi's economic interest in the partnership, which may include her share of partnership profits and assets, after the partnership's debts and liabilities are settled. This may not necessarily be a straightforward transfer of a quarter of the partnership's assets but an amount equivalent to the value of Heidi's share. The exact process and amount may require an accounting of the partnership's assets and possibly a settlement between the heirs and the remaining partners.
Therefore, the most appropriate choice is:
C. Heidi's heirs now have the right to receive Heidi's one-quarter of the partnership's profits and other partnership distributions.