Question

Differentiate between 'Dissolution of Partnership' and 'Dissolution of Partnership Firm' on the basis of 'Continuity of Business'.

Answer 1

Dissolution of the partnership does not involve the termination of the continuity of the business. It only dissolves the current agreement between the partners and a new agreement is drafted.

Whereas, Dissolution of the partnership firm is an official termination of the firm which means that the continuing operations of the firm have ceased to exist.