Practicing Success
Which of the following is a case of dissolution of a partnership firm on happening of certain contingencies? |
When the firm is dissolved by agreement When a partner dies When a partner becomes permanently incapable of performing his duties When the business of the firm becomes illegal |
When a partner dies |
When a partner dies, it necessarily brings about the dissolution of the partnership firm. This is because a partnership is fundamentally based on the mutual agency and association of the partners. The death of a partner affects the ability of the partnership to continue its operations and conduct business. |