Can anyone advise which one is the right answer, I got confused since two different answers from two different resources!!
Ninja as well Surgent answer is “C”
Gleim and Lamvers answer is “A”
Downs, Frey, and Vick formed the DFV general partnership to act as manufacturers' representatives. The partners agreed Downs would receive 40% of any partnership profits and Frey and Vick would each receive 30% of such profits. It was also agreed that the partnership would not terminate for five years. After the fourth year, the partners agreed to terminate the partnership. At that time, the partners' capital accounts were as follows: Downs, $20,000; Frey, $15,000; and Vick, $10,000. There also were undistributed losses of $30,000. If Frey died before the partnership terminated:
Incorrect A. Downs and Vick, as a majority of the partners, would have been able to continue the partnership.
B. the partnership would have continued until the 5-year term expired.
C. the partnership would automatically dissolve.
D. Downs and Vick would have Frey's interest in the partnership.
You answered A. The correct answer is C.
If Frey died before the partnership terminated, the partnership would automatically dissolve. Under the typical state partnership laws, death automatically dissolves a partnership. If the partners wanted to continue the partnership after the death of a partner, they can agree to form a new partnership.
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