American College Exam HS330 Topic 1 Question 79 Discussion

Actual exam question for American College's HS330 exam

Question #: 79
Topic #: 1

All the following statements concerning an entity-purchase buy-sell agreement for a partnership are correct EXCEPT:

AThe partnership makes payments to the decedent-partner's estate to liquidate the partnership interest held by the estate.

BBoth the partners and the partnership are parties to the agreement that provides for business continuation.

CIt is the surviving partners who purchase the decedent's business interest so that the partnership can afford to pay the decedent's estate.

DThe partnership, in effect, liquidates the interest held by the decedent-partner's estate.

Show Suggested Answer

Suggested Answer: D

by Yolando at Dec 23, 2023, 05:45 PM

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Fairy

2 months ago

This question is making my head spin. Maybe the correct answer is to just quit my job and become a professional llama herder instead.

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Lorrine

2 months ago

I'm pretty sure the answer is A. The partnership makes the payments to the decedent-partner's estate, not the other way around.

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Jerry

2 months ago

Ha! This question is trying to trick us. Of course, option B is the correct answer. Both the partners and the partnership are parties to the agreement.

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Tammy

18 days ago

User 3: It's important for business continuation.

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Carey

20 days ago

User 2: Definitely, the agreement involves both the partners and the partnership.

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Gail

25 days ago

User 1: I agree, option B is the correct answer.

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3 months ago

I think the correct answer is C.

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