Give any one difference between reconstitution of a firm and dissolution of a firm ?
Dear Student,
Reconstitution of a firm basically refers to re-forming of the partnership due to change in any of the events like change in profit sharing ratio, admission/death/retirement of partners, or any other changes in their contract/partnership deed.
But dissolution of the firm refers to winding up of the business as well as partnership firm.
In other words, reconstitution would result into reforming of partnership firm with certain changes & dissolution would result into its closure.
Regards
Reconstitution of a firm basically refers to re-forming of the partnership due to change in any of the events like change in profit sharing ratio, admission/death/retirement of partners, or any other changes in their contract/partnership deed.
But dissolution of the firm refers to winding up of the business as well as partnership firm.
In other words, reconstitution would result into reforming of partnership firm with certain changes & dissolution would result into its closure.
Regards