What does dissolution of partnership mean?

Dissolution of partnership refers to the formal process of ending a partnership agreement. This process involves the distribution of the partnership's assets among the partners and settling any outstanding liabilities. When a partnership dissolves, it signifies that the business will cease to operate under the partnership agreement, and the partners will liquidate the assets to pay off debts and divide any remaining value according to their ownership interests.

The other options do not capture the essence of what dissolution entails. Establishing new partnership agreements, joining two partnerships, and revising the terms of a partnership relate to alterations or formations of partnerships, rather than the conclusion and settlement of an existing partnership. Thus, the definition that includes ending a partnership and distributing its assets is the most accurate and relevant in this context.