In a business partnership, what happens if one of the partners dies?

In a business partnership, when one of the partners dies, the surviving partner typically has the right to manage the partnership, but not necessarily as the exclusive manager. The management structure can depend on the partnership agreement, which might specify how the responsibilities are handled in the event of a partner's death.

The partnership does not automatically dissolve unless the partnership agreement explicitly states this as the consequence of a partner's death. While a surviving partner may take on more managerial responsibilities, they do not automatically take over all liabilities; rather, they may need to settle with the deceased partner's estate for their share of the partnership.

The deceased partner's estate typically does not take over the partnership but may be entitled to the deceased partner's share of the partnership assets and profits. Hence, the correct answer reflects the intention for continuity in management rather than a complete transfer of all liabilities or responsibilities.