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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13 days ago

I think the correct answer is C.

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