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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 


Team Careers360 9th Jan, 2024
Answer (1)
Team Careers360 18th Jan, 2024

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.

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