In which of the following cases does the economic relationship between the partners come to an end?
- ADissolution of partnership
- BDissolution of partnership firm
- CRetirement of a partner
- DDeath of a partner
Solution & Step-by-step Explanation
* Dissolution of Partnership: This refers to the reconstitution of the firm where the existing agreement between partners changes (e.g., due to retirement, admission, or death), but the business continues under a new agreement. The economic relationship is altered, not completely terminated.Dissolution of Partnership Firm: This involves the complete breakdown of the economic relationship among all partners, closing down of the business operations, disposal of assets, and settlement of all liabilities.Thus, the economic relationship completely comes to an end during the dissolution of the partnership firm.