Select out of the following that is not considered as one of the modes of reconstitution of a partnership firm.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) - Dissolution of a 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
* Dissolution of a partnership firm LEADS TO CLOSURE OF BUSINESS.