Question:
There are reasons why a partnership dissolves. Give me at least 5 reasons why a partnership
dissolves and why is it a partnership needs to change the articles of co-partnership when
these things occur.
Answer:
Five reasons why a partnership dissolves:
1. Admission of a new partner
Investment by a new partner
Purchasing an interest from existing partners
2. Unlawful act of a partner
3. Retirement or withdrawal of a partner
4. Death of a partner
5. Insanity/incapacity/conduct of a partner
A partnership needs to change the articles of co-partnership when these things occur
because, upon dissolution, the association needs to remove the name of the partner and
replace it with the newly admitted partner. Even though dissolution means the end of the
original purpose of the association, it does not mean that the business will end or cease its
operation. The partnership is not terminated upon dissolution but rather continues until the
winding-up of the partnership affairs is finished. Thus, the new partners will just prepare
new Articles of Partnership to be submitted to the SEC (Securities and Exchange
Commission).
There are reasons why a partnership dissolves. Give me at least 5 reasons why a partnership
dissolves and why is it a partnership needs to change the articles of co-partnership when
these things occur.
Answer:
Five reasons why a partnership dissolves:
1. Admission of a new partner
Investment by a new partner
Purchasing an interest from existing partners
2. Unlawful act of a partner
3. Retirement or withdrawal of a partner
4. Death of a partner
5. Insanity/incapacity/conduct of a partner
A partnership needs to change the articles of co-partnership when these things occur
because, upon dissolution, the association needs to remove the name of the partner and
replace it with the newly admitted partner. Even though dissolution means the end of the
original purpose of the association, it does not mean that the business will end or cease its
operation. The partnership is not terminated upon dissolution but rather continues until the
winding-up of the partnership affairs is finished. Thus, the new partners will just prepare
new Articles of Partnership to be submitted to the SEC (Securities and Exchange
Commission).
