Final answer:
A partner can leave a partnership by either withdrawal or dissolution. Withdrawal can be voluntary, like retirement, or involuntary, such as expulsion by other partners. Dissolution happens upon a partner's death, bankruptcy, or mutual agreement to end the partnership and requires settling obligations.
Step-by-step explanation:
Partners can leave a partnership in two primary ways: withdrawal or dissolution. When a partner chooses to withdraw from the partnership, this might occur either voluntarily or involuntarily.
Voluntary withdrawal includes a partner deciding to retire or pursue other interests, while involuntary withdrawal can happen if the partner is expelled by the other partners according to the terms of the partnership agreement or upon certain events like bankruptcy. The second way a partner can leave is by dissolution of the partnership. Dissolution may take place when a partner passes away, undergoes bankruptcy, or when the partners no longer wish to continue the business together. This often requires settling the partnership's obligations and distributing the remaining assets.
It's important to note that in cases of dissolution, the business would need to be restructured if the remaining partners want to continue operations. This might lead to the formation of a new partnership agreement and potentially the inclusion of new partners. Considering the nature of general partnerships, where responsibilities and liabilities are shared, each partner's departure has significant implications for the business's continuity and financial health.