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Why may the duration of partnership be written in the partnership deed?

Answer and explanation

Correct answer: To state how long the firm will continue

The duration clause describes the intended period for which the partnership will operate. The governing concept is the nature and continuity of the partnership. The deed may state a fixed term, such as five years or until completion of a particular project, or it may indicate that the partnership is at will, meaning its continuation is not tied to a fixed ending date and may be ended according to the applicable agreement and law. Recording duration helps partners plan investment, contracts, renewal, and possible dissolution. Therefore option A is correct because it states how long the firm is expected to continue. The clause does not describe the colour of goods, reduce the number of customers, or remove bank charges.

Related tags

DurationPartnership At WillPartnership DeedPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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