Difference between Dissolution of Partnership and Dissolution of Firm
The term “Dissolution” stands for discontinuation.
Dissolution of Partnership:-
Refers to the change in the existing relations of the partners. The firm continues its business. It may take place on admission, retirement, death, expulsion (the action of forcing someone to leave an organization), and insolvency of a partner or on change in the profit sharing ratio.
Dissolution of Firm:-
Dissolution of Firm means the dissolution of partnership between all the partners of the firm along with the termination of firm’s business.