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Reconstitution of firm takes place in case of: 
  • a)
    Admission of partner 
  • b)
    Retirement of partner 
  • c)
    Expulsion of partner 
  • d)
    All of the above
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Reconstitution of firm takes place in case of:a)Admission of partnerb)...


Reconstitution of firm takes place in case of:


  • Admission of partner: When a new partner is added to the existing partnership firm, it leads to reconstitution of the firm.


  • Retirement of partner: When a partner decides to leave the partnership firm, it results in reconstitution as the firm's structure and ownership need to be adjusted.


  • Expulsion of partner: If a partner is expelled from the partnership for any reason, it also requires reconstitution of the firm to reflect the change in ownership and management.


  • All of the above: Therefore, reconstitution of the firm can occur in any of these scenarios where there is a change in the partnership structure.



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Reconstitution of firm takes place in case of:a)Admission of partnerb)Retirement of partnerc)Expulsion of partnerd)All of the aboveCorrect answer is option 'D'. Can you explain this answer?
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