Advertisements
Advertisements
Question
Assertion (A): Partnership comes to an end with the death of a partner but the firm may continue its business with new partnership agreement.
Reason (R): Death of a partner leads to the restructuring of the firm and not to the dissolution of the partnership firm.
Options
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is true, but Reason (R) is false.
Assertion (A) is false, but Reason (R) is true.
Solution
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
Explanation:
When one of the partners dies, the partnership ceases to exist, but the firm continues and can continue with a new agreement.
