distinguish between dissolution of partnership and dissolution of a firm on the basis of economic relationship
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In the case of dissolution of the partnership, the economic relationship between the partners continues to exist but in changed form. On the contrary, in the dissolution of the firm, economic relationship between partners ceases to exist
dissolution of partnership vs dissolution of firmDissolution of Partnership is not equal to the dissolution of partnership firm. It is due to the fact that when the jural relation present between all partners, comes to an end, it is known as dissolution of firm, however, when any one of the partners become incapacitated, then the partnership between the concerned partner and other partners of the firm, comes to an end, but the firm may continue to operate, if other partners desire so.
The fundamental difference between the dissolution of partnership and dissolution of the firm is that when the partnership is dissolved, there is no other dissolution, but when the firm is dissolved, partnership too comes to an end. Here in this article, we’ve broken down all the relevant facts and differences, take a read.
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