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a partnership is a legal entity where two (or more) people own and operate a business, and each partner owns a percentage of the assets and liabilities of the company. although a partnership agreement is not legally required, it is highly recommended for both the partnerships’ success and an amicable termination, if necessary. what causes a partnership to end? in the event of a partner’s death, the agreement could require the partnership to terminate immediately and have the deceased partner’s assets be reassigned to the remaining partner(s). a partnership termination is necessary when the company is reduced to one owner, ceases to do business, or changes legal structure. after the transfer occurs, the partners can begin the dissolution of a partnership and terminate the partnership agreement.