Question

What is a predistribution plan?

a. a list of the procedures to be performed during a liquidation
b. a guide for the cash distributions to partners during a liquidation
c. a determination of the final cash distribution to the partners on the settlement date
d. a detailed list of the transactions that will transpire in the reorganization of a partnershi

Answer 1

A predistribution plan is d)a guide for the cash distributions to partners during a liquidation.

Step-by-step explanation:

A predistribution plan is:

b) a guide for the cash distributions to partners during a liquidation

During a liquidation, a predistribution plan is created to outline how the cash will be distributed among the partners. It provides a clear and organized approach to ensure that each partner receives their fair share. This plan takes into account factors such as the partners' capital contributions, profit sharing agreements, and any outstanding debts.