Which of the following is NOT a mode of dissolution of a partnership?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- Introduction of a new business line.
* Introduction of a new business line is not a mode of dissolution of partnership.
The dissolution of a partnership can take place in any of the following ways:
*Change in existing profit sharing ratio among partners.
*Admission of a new partner.
*Retirement of a partner.
*Death of a partner.
*Insolvency of a partner.
*Completion of the venture, if the partnership is formed for that purpose.
*Expiry of the period of partnership, if the partnership is for a specific period of time.