In which of the following the Economic relationship between the partners comes to an end? |
Dissolution of partnership Dissolution of partnership firm Retirement of a partner Death of a partner |
Dissolution of partnership firm |
The correct answer is option 2- Dissolution of partnership firm. In Dissolution of partnership firm, the Economic relationship between the partners comes to an end. Dissolution of partnership refers to a change in the relationship between partners due to events like admission, retirement, or death of a partner. The business may still continue whereas Dissolution of partnership firm means complete termination of the business and economic relationship between all partners. The firm ceases to exist. Retirement of a partner leads to dissolution of the partnership (not the firm), and the remaining partners may continue the business. Death of a partner also leads to dissolution of the partnership, but not necessarily the firm, if there's an agreement to continue. |