Question : At the time of admission of a new partner:
Option 1: Old partnership is dissolved
Option 2: Old firm are dissolved
Option 3: Both 1 and 2
Option 4: None of the above
Correct Answer: Old partnership is dissolved
Solution : Answer = Old partnership is dissolved
At the time of admission of a new partner, the existing partnership is typically dissolved and a new partnership is formed. This dissolution of the old partnership occurs because the rights, duties, and liabilities of the partners change with the admission of a new partner, leading to the formation of a new legal entity. Hence, the correct option is 1.
Question : In which condition a partnership firm is deemed to be dissolved?
Option 1: On admission of a partner
Option 2: On retirement of a partner
Option 3: On loss in partnership
Option 4: On expiry of the period of partnership
Question : When a partner retires from the firm having three partners, firm will necessary be …….
Option 1: Dissolved
Option 2: Revalued
Option 3: Reconstituted
Question : Identify the circumstance under which a partnership firm is dissolved.
Option 1: When all or all but one partner of the firm become insolvent
Option 2: In case of change in agreement
Option 3: In case of death of a partner
Option 1: On retirement of a partner
Option 2: On expiry of the period of partnership
Option 3: On a partner’s admission
Option 4: On loss in partnership
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