CUET Preparation Today
What happens to the economic relationship between partners in the Dissolution of a partnership Firm? |
It continues though in a changed form It remains the same as before It comes to an end It depends on the agreement between the partners |
It comes to an end |
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. |
