Which of the following will lead to the Reconstitution of a partnership Firm?
(A) Admission of a new partner
(B) Change in the profit sharing ratio among the existing partners
(C) Retirement of an existing partner
(D) Death of a partner
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is option 3- (A), (B), (C) and (D).
All of the given situation lead to reconstitution of the partnership firm.
Reconstitution of the partnership firm takes place in the following ways-
* Admission of a new partner
* Change in profit sharing ratio
* Retirement of a partner
* Death of a partner