Question : At the time of admission of a new partner:
Option 1: Old partnership is dissolved
Option 2: Old firm are dissolved
Option 3: Both 1 and 2
Option 4: None of the above
Answer (1)
23rd Jan, 2024
Correct Answer: Old partnership is dissolved
Solution : Answer = Old partnership is dissolved
At the time of admission of a new partner, the existing partnership is typically dissolved and a new partnership is formed. This dissolution of the old partnership occurs because the rights, duties, and liabilities of the partners change with the admission of a new partner, leading to the formation of a new legal entity.
Hence, the correct option is 1.
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