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A situation in which a partnerships breaks up completely is called

a family limited partnership
a dissociation
a dissolution
an LLC

1 Answer

4 votes

Answer:

a dissolution

Step-by-step explanation:

The term dissolution means breaking or tearing apart. When a business partnership break completely, it is regarded to have undergone a dissolution. The partnership as a business ceases to exist. All contractual obligations among the partners are terminated.

Partnerships can dissolve for various reasons and under different circumstances. Upon dissolution, partners will share the assets and liabilities as per the partnership agreement, or equally in the absence of an agreement.

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