Asked by Hunter Thomason on Jun 11, 2024

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What events cause the dissolution of a partnership?

Dissolution

The process of legally dissolving a business entity, which includes disbanding its operations and distributing its assets.

Partnership

An officially recognized form of commercial enterprise undertaken by at least two individuals, involving joint management and profit allocation.

  • Recognize the circumstances that lead to the dissolution of a partnership.
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Sidoney Pratt IG: ImperfectlySidJun 12, 2024
Final Answer :
The dissolution of a partnership occurs whenever there is a change in the members that make up the partnership. Dissolution does not mean going out of business, although, on occasion, dissolution would be accompanied by liquidation of assets and termination of the business. Dissolution would occur whenever a new partner is admitted to the partnership, dissolving one partnership and forming a new one. Dissolution also occurs when a partner leaves the partnership or when a partner dies or retires. The Articles of Partnership may allow the partners to force dissolution under some circumstances.