Which of the following will not result in dissolution of a partnership?
A)Withdrawal of a partner.
B)Negative capital balance of a partner.
C)Death of a partner.
D)Admission of a new partner.

Question

Quizplus · Accepted Answer

While withdrawal of a partner, death of a partner, or admission of a new partner can result in dissolution of a partnership, a negative capital balance of a partner alone will not necessarily lead to dissolution. The remaining partners may choose to continue the business with the understanding that the partner with the negative capital balance will bear the deficit or come up with a plan to address the deficit.

Which of the Following Will Not Result in Dissolution of a Partnership