The dissolution of Partnership may take place due to:
A. Retirement of Partner
B. Death of Partner
C. Insolvency of Partner
D. Admission of New Partner
E. Completion of Venture, if partnership formed for that purpose
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → A, B, C, D and E only
Dissolution of partnership means a change in the existing agreement between the partners; the firm may still carry on. Any event that changes the relationship among the partners ends the old partnership.
(A) Retirement of Partner — Correct. The retiring partner leaves, so the old agreement ends.
(B) Death of Partner — Correct. The deceased partner’s relationship with the others ends.
(C) Insolvency of Partner — Correct. An insolvent partner cannot continue as a partner.
(D) Admission of New Partner — Correct. A new agreement is made with the incoming partner.
(E) Completion of Venture, if partnership formed for that purpose — Correct. The purpose of the agreement is over.
NCERT (2026-27 edition):
|
