Kim and Lyle are partners in K&L Sales, which exports technical equipment. If Congress declares that the equipment can no longer be exported, K&L (select one):

a. can continue its business for one twelve-month period.

b. can continue its business indefinitely.

c. is immediately subject to criminal prosecution and penalties.

d. dissolves immediately unless the partners change its business.

Question

Business

Annie Ewing

25 June, 15:24

Kim and Lyle are partners in K&L Sales, which exports technical equipment. If Congress declares that the equipment can no longer be exported, K&L (select one):

a. can continue its business for one twelve-month period.

b. can continue its business indefinitely.

c. is immediately subject to criminal prosecution and penalties.

d. dissolves immediately unless the partners change its business.

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Answers (1)

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Chad Merritt · Answer 1

d. dissolves immediately unless the partners change its business.

Explanation:

If Congress declares that the equipment that Kim and Lyle's export is not to be exported anymore, then the partnership of Kim and Lyle becomes redundant. In other words, the decision by Congress will drive Kim and Lyle out of business. It will be illegal if Kim and Lyle's partnership continues to export.

Kim and Lyle will have to make a decision. They can either change the type of business or dissolve their partnership. Kim and Lyle will have to decide immediately as the partnership will still incur fixed costs even though they are not operating.