When all partners agree to end a partnership, the business is dissolved by:
Correct answer: B. Agreement
- A. Retirement
- B. Agreement
- C. Insolvency
- 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.
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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.
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