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X, Y and Z share profits 3:2:1. X dies and Y and Z continue sharing future profits equally. What is this an example of?
AReconstitution on death
BDissolution of the firm
CAdmission of a partner
DInsolvency of a partner
Answer & Solution
Correct answer: A. Reconstitution on death
The business continues under the surviving partners with a new agreement, so the firm is reconstituted.
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