Transferable interest of a partner includes all of the following except: A. the partner's share of the profits and losses of the partnership. B. the right to receive distributions. C. the right to receive any liquidating distribution. D. the authority to transact any of the partnership's business operations.

Question

Business

Celia

26 January, 21:00

Transferable interest of a partner includes all of the following except: A. the partner's share of the profits and losses of the partnership. B. the right to receive distributions. C. the right to receive any liquidating distribution. D. the authority to transact any of the partnership's business operations.

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Kamren Henderson · Answer 1

D. the authority to transact any of the partnership's business operations.

Explanation:

As with the sale of share or through any deed, all the monetary rights and benefits are transferable in partnership agreement.

As the person holding rights of such beneficial assets has his income as share, and his choice how to exercise such income, whether to use such income or distribute such benefit.

But when it comes to decision making the right is not transferable as the right will impact the partnership organisation also. And there is no assurance whether the new person holding rights will take decisions wisely.

Therefore, the correct option is:

Statement D