The correct answer is: B. Partnership will be ended.
A partnership is a business relationship between two or more people who agree to share the profits and losses of a business. When one partner dies, the partnership is automatically dissolved unless the partnership agreement states otherwise. This is because the death of a partner changes the basic structure of the partnership. The surviving partners may choose to continue the business as a sole proprietorship or form a new partnership with new partners.
Option A is incorrect because the firm may continue to exist even if the partnership is dissolved. The firm is a legal entity that is separate from the partners. The firm may be owned by the partners, but it is not the same as the partnership.
Option C is incorrect because the firm and the partnership are two different things. The firm may continue to exist even if the partnership is dissolved.
Option D is incorrect because the partnership will be ended unless the partnership agreement states otherwise.