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Unlike a company which enjoys perpetual succession, in a partnership the death or insolvency of a partner:
AOrdinarily results in dissolution of the firm, subject to a contrary contract
BRequires court approval to continue
CHas no effect on the firm
DConverts it into a company
Answer & Solution
Correct answer: A. Ordinarily results in dissolution of the firm, subject to a contrary contract
A firm has no perpetual succession; subject to a contract to the contrary, the death, retirement or insolvency of a partner dissolves the firm.
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