Question

What are the cause of retirement of partner from a partnership firm any five cause

Answer 1

Retirement of a partner

1. if the retiring partner mentioned in the contract about the term of being partner...
2. if the partner gave a notice to the active partner about his intention to retire....
3. if the partner is incapable to be a partner....
4. if he is of poor health, old,....
5. a partner can retire with the consent of all other partners in the firm...

Answer 2

Age, death, change in the nature of the business, insanity, bad health effects are some of the causes of the retirement of the partner.

Explanation:

• There are many reasons that may convince a partner to take retirement from a partnership.
• Age - Due to the age restrictions a partner has to retire from the partnership.
• Change in the nature of the business - If a partner is not very happy regarding the nature of business, he/she may take retirement from the partnership.
• Due to bad health effects - Due to ill effects on health, a partner can withdraw his/her name from the partnership firm.
• Death - A partner’s death is one of the main causes of retirement. Due to the death of the partner, the partnership is not continued by him/her.
• Insanity - It refers to a disordered state of mind of the partner. It can cause the retirement of the one.