____________ means withdrawal by a partner from the business of the firm which may be due to his bad health, old age or change in business interests.

Death of a partner

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Retirement of an existing partner

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Admission of a new partner

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Change in the profit sharing ratio among the existing partner

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Solution

The correct option is B Retirement of an existing partner
Retirement of an existing partner is one of the mode of reconstitution of partnership firm. It means withdrawal by a partner from the business of the firm which may be due to his bad health, old age or change in business interests. In fact, a partner can retire any time if the partnership is at will.

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Similar questions

At the time of admission of a partner in an existing partnership business, what happens with the profit sharing ratio?

State the ratio in which the partners share the accumulated profits when there is a change in the profit sharing ratio amongst existing partners.

R s .36, 000

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