When all partners agree to end a partnership, the business is dissolved by:
Correct answer: C. Agreement
- A. Retirement
- B. Insolvency
- C. Agreement
- D. Notice by one partner
Explanation
Partners may dissolve the firm by mutual agreement because the partnership relationship is based on consent. Retirement or unilateral notice can have different legal effects and does not always mean that all partners agree to dissolution.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Nature and Forms of Business Organisation
Business organisation combines people, capital, materials and entrepreneurship to produce goods or services and earn profit, while also meeting customer and social needs. Coverage includes sole proprietorships, partnerships, companies and cooperatives, with comparisons of ownership, liability, control, profit sharing, continuity and legal status.
Practise Nature and Forms of Business Organisation
30 free Nature and Forms of Business Organisation MCQs from Introduction to Business, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Introduction to Business questions like this
Introduction to Business is on this paper prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for it.
More Nature and Forms of Business Organisation questions
A private company is generally prohibited from:
Which form of business organisation is owned by shareholders but managed by directors elected by them?
The principle of one member, one vote is most closely associated with a:
A company created to pursue charitable, educational or other non-profit purposes is commonly described as a:
The document that normally states a company’s objects and the scope of its powers is the: