Dissociation in a partnership refers to which event?

• A. A new partner is admitted.
• B. A partner leaves the partnership.
• C. The partnership dissolves automatically.
• D. The partnership continues unchanged.

Answer: (B)

Dissociation is the event in which a partner ceases to be part of the partnership—essentially, the partner leaves the firm. That’s why describing a partner leaving the partnership is the best fit. Admitting a new partner changes membership in the opposite direction, not dissociation. Saying the partnership dissolves automatically mixes up dissociation with dissolution; dissociation is a change in who is a partner, while dissolution ends the partnership as a entity (often only after further steps or under specific terms). The partnership continuing unchanged would ignore the fact that a partner has left. In practice, dissociation can lead to winding up or dissolution, or the partnership may continue with remaining partners depending on the agreement and law, but the key event defined as dissociation is a partner leaving.