Exam BEC Topic 1 Question 419 Discussion

Actual exam question for AICPA's BEC exam
Question #: 419
Topic #: 1
Cobb, Inc., a partner in TLC Partnership, assigns its partnership interest to Bean, who is not made a
partner. After the assignment, Bean asserts the rights to:
I. Participate in the management of TLC.
II. Cobb's share of TLC's partnership profits.
Bean is correct as to which of these rights?

Suggested Answer: B Vote an answer

Choice "b" is correct.
Rule: The assignee of a partner's interest in the partnership does not thereby become a partner absent
the unanimous consent of the other partners. Thus, the assignee has no right to participate in the
management of the partnership and has only a right to receive the assignor's share of the partnership
profits.
Choices "a", "c", and "d" are incorrect, per the above rules.

by Norman at Nov 19, 2024, 03:09 AM

Limited Time Offer

15%

Off

Get Premium BEC Questions as Interactive Self Test Engine or PDF

Comments

Chosen Answer:
This is a voting comment (?) , you can switch to a simple comment.
Switch to a voting comment New
Nick name: Submit Cancel
A voting comment increases the vote count for the chosen answer by one.

Upvoting a comment with a selected answer will also increase the vote count towards that answer by one. So if you see a comment that you already agree with, you can upvote it instead of posting a new comment.
0
0
0
10