If a partner dies or retires, the partnership will:Group of answer choicesautomatically be wound up.automatically continue.be automatically dissolved.look for a replacement partner.
Question
If a partner dies or retires, the partnership will:Group of answer choicesautomatically be wound up.automatically continue.be automatically dissolved.look for a replacement partner.
Solution
When a partner dies or retires, the partnership does not automatically continue or get wound up. The exact course of action depends on the terms outlined in the partnership agreement.
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If the partnership agreement includes a clause that allows the partnership to continue after the death or retirement of a partner, then the partnership may automatically continue.
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If there is no such clause, the partnership may be automatically dissolved. This means that the partnership will need to settle its debts and distribute any remaining assets among the partners.
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The partnership may also look for a replacement partner. This would typically involve the remaining partners buying out the retiring or deceased partner's share of the partnership and then admitting a new partner.
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If the partnership agreement does not specify what happens in the event of a partner's death or retirement, then the partnership may be wound up. This involves settling the partnership's debts and distributing any remaining assets among the partners.
So, the answer to your question depends on the specific terms of the partnership agreement.
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