Multiple choice

In which of the following cases, a partner may cease to be a partner without the dissolution of the firm?

  1. Retirement

  2. Insolvency

  3. Death

  4. All these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A partner may cease to be a partner without dissolution of the firm through retirement (with consent), insolvency (which automatically terminates partnership status), or death (which doesn't necessarily dissolve the firm if the partnership agreement provides for continuation). These events affect individual partners but the firm itself can continue surviving the departure of partners.

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