The correct answer is: A. Dissolution of partnership
A partnership is a business relationship between two or more people who agree to share the profits and losses of a business. A partnership is dissolved when one or more of the partners dies, retires, or leaves the partnership. In this case, A, B, and D have died, so the partnership is dissolved.
A firm is a legal entity that is separate from its owners. A firm can be owned by one person, multiple people, or a corporation. A firm is not dissolved when one or more of its owners dies, retires, or leaves the firm. In this case, the firm will continue to exist, but it will be owned by C only.
Here is a brief explanation of each option:
- A. Dissolution of partnership
A partnership is dissolved when one or more of the partners dies, retires, or leaves the partnership. In this case, A, B, and D have died, so the partnership is dissolved.
- B. Dissolution of firm
A firm is a legal entity that is separate from its owners. A firm can be owned by one person, multiple people, or a corporation. A firm is not dissolved when one or more of its owners dies, retires, or leaves the firm. In this case, the firm will continue to exist, but it will be owned by C only.
- C. Both dissolution of partnership and firm
This option is incorrect because a firm is not dissolved when one or more of its owners dies, retires, or leaves the firm. In this case, the firm will continue to exist, but it will be owned by C only.
- D. Neither dissolution of partnership nor firm
This option is incorrect because the partnership is dissolved when one or more of the partners dies, retires, or leaves the partnership. In this case, A, B, and D have died, so the partnership is dissolved.