What is the term for the change in the relationship of partners when the business is no longer carried on?

The change in the relationship of partners when the business is no longer carried on is referred to as the dissolution of the partnership. This term specifically denotes the process by which the partnership ceases to exist as a legal entity, although it does not necessarily mean that the business's assets have been liquidated or that all affairs have been fully settled.

Dissolution marks the end of the partners' business relationship in terms of operating the partnership, and it can be triggered by various factors, such as mutual agreement, expiration of a time period, fulfillment of the partnership’s purpose, or other events that make it impracticable to continue business operations.

While liquidation of partnership assets and winding up of affairs are related processes, they occur after the dissolution of the partnership. Liquidation focuses specifically on converting partnership assets into cash and settling debts, while winding up involves the broader set of activities needed to finalize the partnership's business obligations and distribute remaining assets. Thus, dissolution stands out as the correct term for the initial change in the relationship among partners when the business ceases to operate.