Question

A partnership can be terminated by which of the following

A. Bankruptcy
B. Death of a partner
C. Agreement by partners
D. All of the above

The answer is D

Answer 1

Answer

A Partnership can be terminated by bankruptcy, death of a partner and agreement by partners. The answer is D. all of the above.

Explanation

Terms leading to the termination and dissolution of a partnership should be specified in a partnership agreement. The terms may include all the events that might lead to termination of the agreement. A partnership can terminate if the expiry date is reached, when the project is completed, death of a partner, bankruptcy of a partner, illegality of activities and a court application for an order of termination.

Answer 2

The correct answer is D, All of the above.

A partnership can be terminated by Bankruptcy, Death of a partner, Agreements by partners.

A partnership is a form of business in which two or more people come together to run a business on percentage basis. All the partners are liable for any loss that may incur. A formal agreement is signed between the partners, discussing the terms and conditions in it. There are possibilities of terminating the partnership. These could be the death of any partner, bankruptcy, or indicated by them in the agreement.