Which Event Would Not Result in the Automatic Dissolution of a Partnership

question 22

Multiple Choice

Which event would not result in the automatic dissolution of a partnership?

• A) The bankruptcy of a partner
• B) A partner's illness
• C) The retirement of an old partner
• D) The admission of a new partner

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Definitions:

Liability

Financial obligations or debts that a company or individual owes to others, required to be settled over time.

Accrual

Involves recording revenues and expenses when they are incurred, regardless of when cash transactions occur.

Disclosure

The act of making new or important information known, especially facts that may influence a decision or affect the perception of a situation.

Debt-Paying Ability

A measure of a company's financial capacity to meet its long-term obligations, indicating its financial stability and risk level.