0538452803_269411 - signee to become a substituted limited...

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BLTC-9e Sample Answer for End-of-Chapter Hypothetical Question with Sample Answer Chapter 32: All Forms of Partnerships 32–2 Hypothetical Question with Sample Answer Dorinda, Luis, and Elizabeth form a limited partnership. Dorinda is a general partner, and Luis and Elizabeth are limited partners. Consider each of the separate events below, and discuss fully which event(s) constitute(s) a dissolution of the limited partnership. 1 Luis assigns his partnership interest to Ashley. 2 Elizabeth is petitioned into involuntary bankruptcy. 3 Dorinda dies. Sample Answer: 1 A limited partner’s interest is assignable. In fact, assignment allows the as-
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Unformatted text preview: signee to become a substituted limited partner with the consent of the remaining partners. The assignment, however, does not dissolve the limited partnership. 2 Bankruptcy of the limited partnership itself causes dissolution, but bankruptcy of one of the limited partners does not dissolve the partnership unless it causes the bankruptcy of the firm. 3 The retirement, death, or insanity of a general partner dissolves the partner-ship unless the business can be continued by the remaining general partners. Because Dorinda was the only general partner, her death dissolves the limited partnership....
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