Downs, Frey, and Vick formed the DFV general partnership to act as manufacturers' representatives. The partners agreed Downs would receive 40% of any partnership profits and Frey and Vick would each receive 30% of such profits. It was also agreed that the partnership would not terminate for five years. After the fourth year, the partners agreed to terminate the partnership. At that time, the partners' capital accounts were as follows: Downs, $20,000; Frey, $15,000; and Vick, $10,000. There also were undistributed losses of $30,000. If Frey died before the partnership terminated .

the partnership would automatically dissolve.

Explanation:

A partnership is referred to as an arrangement that occurs when two or more people come together and join the resources that they've together to form a business and share the profits that they make.

Since the partners agreed to terminate the partnership after the fourth year, if Frey died before the partnership terminated, the partnership would automatically dissolve.

We should note that some of the reasons why a general partnerships will dissolve include:

• Withdrawal of a partner

• Death of a partner

• Bankruptcy

Since Frey is dead, the partnership will be dissolved.

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