Question 42 Which of the following will not result in the termination and liquidation of a partnership? 1) Partners are incompatible and choose to cease operations. 2) There are excessive losses that are expected to continue. 3) Retirement of a partner. O1 only O 1 and 2 only O2 and 3 only 3 only O 1, 2, and 3
Question 42 Which of the following will not result in the termination and liquidation of a partnership? 1) Partners are incompatible and choose to cease operations. 2) There are excessive losses that are expected to continue. 3) Retirement of a partner. O1 only O 1 and 2 only O2 and 3 only 3 only O 1, 2, and 3
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Question 42
Which of the following will not result in the termination and liquidation of a partnership?
1) Partners are incompatible and choose to cease operations.
2) There are excessive losses that are expected to continue.
3) Retirement of a partner.
O1 only
O 1 and 2 only
O2 and 3 only
Ⓒ 3 only
O 1, 2, and 3
Expert Solution
Step 1
Termination of partnership refers to the dissolution of a partnership between two or more individuals or entities. It means that the partnership will no longer exist, and the partners will no longer conduct business together. The termination of a partnership can occur for various reasons, such as the expiration of the partnership agreement, the retirement, death or disability of one of the partners, a breach of the partnership agreement, or a mutual agreement among the partners to dissolve the partnership.
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