What happens to the economic relationship between partners in the Dissolution of a partnership Firm?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- It comes to an end.
The economic relationship between partners in the Dissolution of a partnership Firm comes to an end.
In the dissolution of a firm, the economic relationship between partners ceases to exist. A firm is a legal entity formed by a group of partners to carry out a business activity. When a firm is dissolved, it means that the partnership agreement and the business operations are terminated. The dissolution of a firm marks the end of the joint economic venture between the partners.