ACCA LW · Chapter 7 · Question 7 of 10
Which of the following events dissolves an ordinary partnership automatically under the Partnership Act 1890, unless the partnership agreement provides otherwise?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The death or bankruptcy of a partner
Explanation
Unless otherwise agreed, a partnership is dissolved by the death or bankruptcy of any partner, by expiry of a fixed term, by completion of the undertaking, or (for a partnership at will) by notice. Admission of a partner or a period of leave does not dissolve the firm. A fixed-term partnership cannot generally be ended early simply by one partner giving notice.
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