Mead, Nero, and Olen do business as Pipe & Plumbing Services. After Mead's relationship to the firm ends, Nero and Olen agree to discontinue the business. This is
A) dissociation.
B) dissolution.
C) gross negligence.
D) simple misconduct.

Question

Quizplus · Accepted Answer

Dissolution is the process of ending a business, which includes settling all debts and distributing remaining assets among the partners. In this scenario, since Nero and Olen agree to discontinue the business after Mead's departure, it is an example of dissolution. Choice A, dissociation, refers to a partner leaving a partnership while it continues to operate. Choices C and D are not applicable in this scenario.

Mead, Nero, and Olen Do Business as Pipe & Plumbing