Question

Bobbie and Adam each own 35% of partnership BAB. On October 15, 2018, Bobbie sells her interest to Bob, who is a 30% partner. On October 16, 2019, Adam sells his interest to Bob. When does the partnership terminate?

Answer 1

Explanation:

Such partnerships only terminate when one of the partners sells his entire share which makes him no longer a partner in the company, but there may still be another partnership in the company. The other way all partnerships in the company terminate is when a single party/partner gains control of the entire companies' shares meaning they are 100% owner of the company and no other individual has any controlling interest in the company.