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 A change in nature of business can be effected only by : 
  • a)
    Unanimous consent of all partners 
  • b)
    Consent of majority partners 
  • c)
    Consent of working partners
  • d)
    Consent of sleeping partners 
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
A change in nature of business can be effected only by :a)Unanimous co...
Change in Nature of Business


  • Requirement for Change: A change in nature of business can only be effected with the unanimous consent of all partners.

  • Unanimous Consent: This means that all partners, whether they are majority partners, working partners, or sleeping partners, must agree to the change.

  • Importance of Unanimous Consent: It is crucial to have unanimous consent to ensure that all partners are on board with the decision and to prevent any conflicts or disagreements in the future.

  • Legal Implications: Without unanimous consent, any change in nature of business may not be legally valid and could lead to disputes among partners.

  • Decision Making Process: Partners should discuss and communicate openly to reach a consensus on the proposed change before moving forward with any decisions.

  • Documentation: It is important to document the decision and the consent of all partners in writing to avoid any misunderstandings or disputes later on.


By following these guidelines and obtaining unanimous consent from all partners, a change in nature of business can be effectively implemented within the partnership.
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A change in nature of business can be effected only by :a)Unanimous consent of all partnersb)Consent of majority partnersc)Consent of working partnersd)Consent of sleeping partnersCorrect answer is option 'A'. Can you explain this answer?
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