Multiple Choice
Becca Franklin and Suzanne Peterson formed an LLC as co-owners and managers.The LLC made $275,000 after expenses last year.There are no provisions in their operating agreement on how profits are to be split.
-Becca Franklin and Suzanne Peterson have formed a general partnership.The partnership,BFSP Dental,sells used dental equipment.Tragically,Suzanne is killed in an auto accident.At the time of the accident,BFSP has two dental chairs ($50,000 each) and four high-powered drills ($30,000 each) .What happens to the partnership as a result of Suzanne's death?
A) Becca has the right to continue the partnership.
B) The partnership is dissolved.
C) There is right of survivorship in general partnerships, so Becca owns the business in full.
D) The partnership will need to go through a reorganization.
Correct Answer:

Verified
Correct Answer:
Verified
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