Reasons For Dissolution of Partnership - SS2 Accounting Past Questions and Answers - page 1
What is one reason for the dissolution of a partnership?
Retirement or death of a partner
Winning a big contract
Opening a new branch
Hiring new employees
What may cause a partnership to become unworkable?
Mutual agreement
Financial problems
Changes in business goals or strategies
All of the above
Which of the following is NOT a reason for the dissolution of a partnership?
Disagreements among partners
Mutual agreement
Winning a big contract
Financial problems
What can partners do if they have different goals or strategies for the business?
Dissolve the partnership
Work together to find a compromise
Ignore the differences and continue operating
Hire a mediator to resolve the conflict
When might partners choose to dissolve a partnership?
When they are making a lot of money
When they are experiencing financial difficulties
When they have a lot of employees
When they have a lot of customers
What are some reasons for the dissolution of a partnership?
Reasons for the dissolution of a partnership may include the retirement or death of a partner, disagreements among partners, financial problems, changes in business goals or strategies, and mutual agreement.
What should partners do if they are experiencing financial difficulties in the partnership?
Partners should evaluate the financial situation of the partnership and explore ways to improve it. If the situation is irreparable, they may choose to dissolve the partnership.