SIE Exam Question 313: Answer and Explanation

Question: 313

The order of liquidation in a limited partnership is

• A. general partner, secured bondholder, limited partner, unsecured bondholder.
• B. secured bondholder, unsecured bondholder, limited partner, general partner.
• C. secured bondholder, general partner, unsecured bondholder, limited partner.
• D. general partner, limited partner, unsecured bondholder, secured bondholder.

Correct Answer: B

Explanation:

B - The order of liquidation in a limited partnership is secured bondholder, unsecured bondholder, limited partner, and lastly general partner.