'When a partner is guilty of misconduct which is likely to adversely affect the business of the firm, then dissolution of firm can take place'
Which mode of dissolution of firm is highlighted in the given lines?
Answer & explanation
Correct answer: option 4
The correct answer is option 4- Dissolution by Court.
Dissolution by Court is highlighted in the given lines.
At the suit of a partner, the court may order a partnership firm to be dissolved on any of the following grounds:
(a) when a partner becomes insane;
(b) when a partner becomes permanently incapable of performing his duties as a partner
(c) when a partner is guilty of misconduct which is likely to adversely affect the business of the firm;
(d) when a partner persistently commits breach of partnership agreement;
(e) when a partner has transferred the whole of his interest in the firm to a third party;
(f) when the business of the firm cannot be carried on except at a loss; or
(g) when, on any ground, the court regards dissolution to be just and equitable