The vested rights of partners are not extinguished by dissolving the firm,and the existing liabilities remain.

Question

Quizplus · Accepted Answer

The vested rights of partners refer to their legal entitlements and assets in the partnership, which continue to exist even after the dissolution of the firm. These rights may include things like ownership of property, obligation to pay debts, and entitlement to profits. Similarly, the liabilities of the partnership do not disappear upon dissolution, and partners may still be responsible for any outstanding debts or legal disputes. Therefore, the statement is true that the vested rights of partners are not extinguished by dissolving the firm, and existing liabilities remain.

The Vested Rights of Partners Are Not Extinguished by Dissolving