Observation

The question was attempted by most candidates and their performance was also good.

The expected responses to the question include:

4 (a) A partnership is a business that is carried out by two or more persons for the purpose of making profit.                                                                        

(b)Types of Partners

• Active partner
• General partner
• Partner by estoppel
• Dormant partner/Sleeping
• Nominal partner/Quasi
• Limited Partner

(c)Conditions for Dissolution of a Partnership

i.End of the term fixed for the partnership would result to the dissolution of a partnership.

ii. The termination of the venture for which the partnership was originally formed.
iii. If a partner gives notice of intention to withdraw from the partnership./Mutual    
agreement between partners to dissolve.
iv. The death or bankruptcy of one of the partners.
v. If a partner uses part of the contributed capital to settle personal debts.
vi. If the partnership business becomes illegal.
vii. If a partner becomes insane and incapable of performing the duties of a   partner.
viii. When a partner has been found guilty of gross misconduct either in the partner’s business or in private life.

ix. When the partnership continues to make losses.
x. When a court of law thinks it is just and equitable to dissolve the partnership.
xi. When a member of the partnership becomes an alien.
xii. Continuous disagreement between partners.
xiii. Admission of new partner leads to the dissolution of partnership.