Death of a partner
Insolvency of a partner
Consent of all partners
All of the above
Answer is Right!
Answer is Wrong!
The correct answer is: D. All of the above
A partnership is a business relationship between two or more people who agree to share the profits and losses of the business. A partnership can come to an end for a number of reasons, including the death of a partner, the insolvency of a partner, or the consent of all partners.
- Death of a partner: When a partner dies, the partnership is automatically dissolved. The surviving partners may choose to continue the business as a new partnership, but they are not required to do so.
- Insolvency of a partner: When a partner becomes insolvent, the partnership is also automatically dissolved. This is because an insolvent partner is unable to meet their financial obligations, and this can put the partnership at risk.
- Consent of all partners: The partners can also choose to dissolve the partnership at any time, even if there is no reason for doing so. This is known as a “dissolution by agreement.”
In addition to these reasons, a partnership may also come to an end if the partners cannot agree on how to manage the business, or if the business becomes unprofitable.