Herman rightfully dissociated from Oak Tavern, a partnership, 18 months ago. Neither Herman nor the remaining Oak
Question:
Herman rightfully dissociated from Oak Tavern, a partnership, 18 months ago. Neither Herman nor the remaining Oak Tavern partners notified anyone with whom Oak Tavern does business that Herman had left the partnership. Oak Tavern has not paid one of its suppliers, Great Grains, for its purchases over the past 10 months. Can Great Grains recover the money it is owed by Oak Tavern from Herman?
a. Yes, but Herman can recover whatever he pays to Great Grains from Oak Tavern.
b. Yes, because dissociated partners remain liable for debts incurred by the partnership at any time.
c. No, because the debt to Great Grains was incurred after Herman was dissociated from the Oak Tavern.
d. No, because Herman was not wrongfully dissociated.
Auditing and Assurance Services Understanding the Integrated Audit
ISBN: 978-0471726340
1st edition
Authors: Karen L. Hooks