5. (True) or (False)? If an existing partner withdraws from the partnership, the partnership must liquidate.

A. (True)

B. (False)

6. Upon the formation of a partnership, Tom contributed 60% of the net assets, Derick contributed 40%, and Harry contributed no assets. However, Harry has special expertise in his field. In recognition of this, the partnership agreement specifies that Harry is entitled to 10% of the net assets of the partnership. Profits and losses are shared based upon capital balances. Under the agreement, Toms capital share is:

A. 36%

B. 40%

C. 50%

D. 54%