Question

Distinguish between 'Dissolution of Partnership' and 'Dissolution of Partnership Firm' on the basis of 'Economic Relationship'.

Answer 1

Dissolution of a partnership does not imply that the business of the partnership has ended. Hence, the economic relationship between the partners still continues to exist but in a different form.

Whereas, Dissolution of a partnership firm implies that the business of the firm has ended and hence the economic relationship between the partners ends as well.