Dissolution of a partnership:
A) always means that the business has ended.
B) increases the authority of the partners.
C) is followed by a winding-up period.
D) means the partners' vested rights are extinguished.

Question

Quizplus · Accepted Answer

Dissolution of a partnership does not always mean that the business has ended. It can also occur when a partner leaves or a new partner joins. However, in any event, dissolution is followed by a winding-up period, during which the partnership's affairs are settled and its assets are distributed. This process can take several months or even years, depending on the complexity of the partnership's affairs. During the winding-up period, the partners' vested rights are not extinguished but are instead protected and enforced.

Dissolution of a Partnership