Multiple choice

The reconstitution of a firm takes place in all of the following cases, except

  1. admission of a new partner

  2. death of a partner

  3. insolvency of a partner

  4. change in profit sharing ratio

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Option (4) is correct: The reconstitution of a firm does not take place when there is a change in the profit sharing ratio.