Retirement or death of a partner will create a situation for the continuing partners, which is known as.........
Answer & explanation
Correct answer: option 1
The correct answer is option 1- Dissolution of partnership.
Admission, Retirement or Death of a partner leads to the dissolution of the partnership and a new partnership takes its place. Partnership firm will continue its business with new terms and conditions. When partnership continues its business with new agreement then there is only dissolution of partnership not the partnership firm.