Question

Assertion (A): Partnership comes to an end with the death of a partner but the firm may continue its business with new partnership agreement.

Reason (R): Death of a partner leads to the restructuring of the firm and not to the dissolution of the partnership firm.

Options

• Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).

• Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).

• Assertion (A) is true, but Reason (R) is false.

• Assertion (A) is false, but Reason (R) is true.

Answer 1

Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).

Explanation:

When one of the partners dies, the partnership ceases to exist, but the firm continues and can continue with a new agreement.