Final answer:
The dissolution of a partnership occurs when there is any change in the individuals who make up the partnership. This can happen when partners leave or new ones join, which may result in a new partnership agreement to address changes in liabilities and operations.
Step-by-step explanation:
The dissolution of a partnership can occur for several reasons, not limited to just one event. Specifically, the correct answer to the question 'The dissolution of a partnership occurs...' is e. when there is any change in the individuals who make up the partnership. This means the partnership can dissolve when a partner leaves or if a new partner is admitted, impacting the legal and financial structure of the business. Partners are responsible for each other's actions, and when the partnership composition changes, liabilities and responsibilities may shift, possibly necessitating the end of the existing partnership agreement and the formation of a new one.
Partnership dissolutions due to a partner leaving, retiring, or passing away need careful consideration, as partners are accountable for each others’ actions, and the business itself might undergo significant transformations. Despite such challenges, partnerships are often preferred for reasons such as ease of formation, management simplicity, and tax advantages. Lastly, as with any business, partnerships also need to evaluate their operational efficacy continuously, and sometimes, closing the firm might be more sensible than continuing production.