Question

women have been encouraged throughout the world to be entrepreneurs. Many reasons, some of
them being to support themselves and their families; to attain the fulfillment of having started
something on their own and to satisfy their desire for financial independence. Women not only
create jobs for themselves and others, but also work toward growing their businesses, and
constantly innovating new products and services. One such example was the partnership venture
of Ms. Amna, Ms. Saeeda , Ms. Sana and Ms. Iba. This partnership firm was called as “The Beauty
Salon”. Based in Qurum since inception in 2015, this SME concentrated on providing various
cosmetic and beauty treatments to its clients. The company closed doors to all its clients in 2020
due to death of one of its partners, Ms. Iba
You are commerce graduate and providing consultant services for SME business like
formation, sole trader and partnership business. Ms.Amna approach to us to guide how to
solve the issue after Ms.Iba death. Being a Consultant, you will provide all possible way to
solve above issue.   

Answer 1

The above case is the case of a partnernership firm which needs to clase down it's operatons on the death of a partner. In the above case, Ms. Amna approach to a consultant for solving the issue regarding the continuation of the partnership firm post the death of one of it's partner as their firm was running successfully before the death of one partner. With the death of one partner the partnerership firm cannot continue with it's operations and need to shut it down.

As a consultant I would suggest the following ways to overcome the issue after MS, Iba death:

• The partnership will continue if the nominee or representative of the deceased partner is willing to take place of the deceased partner.
• If there is no one left to take the place of the deceased partner the other partner can buyout the share of the former partner at current market price.