Multiple choice

A, B, C and D are equal partners. A, B and D die together in a plane crash. This accident results in

  1. dissolution of partnership

  2. dissolution of firm

  3. both dissolution of partnership and firm

  4. neither dissolution of partnership nor firm

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

A partnership requires at least two people to exist. If three out of four partners die, the partnership is dissolved, and since only one person remains, the firm itself cannot continue as a partnership and is also dissolved.