Which of the following is NOT typically a part of the liquidation process?

The liquidation process in a partnership involves several specific steps aimed at dissolving the partnership's business and settling accounts. The key components of this process generally include settling debts with creditors, reducing the business's assets to cash, and distributing any remaining funds to the partners according to their partnership agreement or relevant legal provisions.

Establishing a new partnership is not part of the liquidation process. In fact, during liquidation, the focus is on winding down the existing partnership rather than creating a new entity. Options involving settling debts, converting assets into cash, and distributing leftover funds are all integral steps aimed at concluding the partnership’s affairs, ensuring that creditors are paid, and then distributing what remains to the partners if possible. Therefore, the correct identification of the option that does not fit within the traditional steps of liquidation is indeed the establishment of a new partnership.