Partnership comes to an end in case of __________a)Death of a partnerb...
Partnership comes to an end in case of:
Death of a partner:
When a partner in a partnership firm dies, the partnership automatically comes to an end. This is because a partnership is based on the mutual agreement and trust between the partners, and the death of a partner affects the continuity of the partnership. In such a case, the remaining partners may choose to dissolve the partnership or reconstitute it by admitting a new partner.
Insolvency:
If a partner becomes insolvent, it can lead to the dissolution of the partnership. Insolvency refers to the inability of a partner to pay his/her debts when they become due. In such a situation, the other partners may decide to dissolve the partnership in order to protect their own interests and avoid any liabilities arising from the insolvent partner.
Retirement of a partner:
When a partner decides to retire from the partnership, it can also lead to the end of the partnership. Retirement typically involves the withdrawal of a partner from the business and the settlement of their accounts. The remaining partners may choose to dissolve the partnership or reconstitute it by admitting a new partner in place of the retiring partner.
All of these:
The correct answer is option 'D' - all of these. This is because any one of these events - death of a partner, insolvency of a partner, or retirement of a partner - can lead to the dissolution of the partnership. Each of these events disrupts the continuity and mutual agreement between the partners, making it necessary to either dissolve the partnership or reconstitute it.
In conclusion, partnership comes to an end in case of the death of a partner, insolvency of a partner, or retirement of a partner. These events disrupt the continuity and mutual agreement between the partners, leading to the dissolution of the partnership.
Partnership comes to an end in case of __________a)Death of a partnerb...
Because after all these cases new partnership deed made(When firm want to continue the partnership.) .