Question

In which of the following forms of doing business does the death of one of the owners cause dissolution? a. nonprofit corporation b. partnership c. S Corporation d. closely-held corporation e. C Corporation

Answer 1

b. partnership

Step-by-step explanation:

Partnership refers to a form of business wherein two or more individuals agree to carry out a business mutually agreeing to share profits and losses in agreed ratio as per the clauses specified in the partnership deed.

Also, upon retirement or death of a partner, the partnership firm gets dissolved and requires to be reconstituted again with necessary changes being carried out in clauses and specified profit sharing ratio in the partnership deed.

Another significant feature of partnership being, except for limited liability partnership, in all other forms of partnerships, the partners are exposed to unlimited risk.