Question : Any change in the relationship of existing partners which results in an end of the existing agreement and enforce a new agreement is called
Option 1: Revaluation of partnership
Option 2: Reconstitution of partnership
Option 3: Realization of partnership
Option 4: Dissolution of firm
Correct Answer: Reconstitution of partnership
Solution : Answer = Reconstitution of partnership
Reconstitution of partnership refers to any change in the existing partnership agreement that results in the creation of a new agreement among the partners. This could involve the admission of new partners, retirement of existing partners, or changes in profit-sharing ratios. It marks a significant alteration in the partnership structure and obligations.
Hence, the correct option is 2.
