Which of the following statements truly makes the distinction between Dissolution of Partnership and Dissolution of Firm:

(A) In dissolution of partnership, business is not terminated, while in dissolution of firm business is terminated.
(B) The Court intervenes in dissolution of Partnership because a partnership is not dissolved by mutual agreement. A firm can not be dissolved by court order.
(C) Economic relationships between partners continue in a changed form in dissolution of partnership. Economic relationships between the partners come to an end at the dissolution of the Firm.
(D) Dissolution of Partnership doesn't require permanent closure of books, while in Dissolution of firm books are closed.

Choose the correct answer from the options given below:

(A), (C) and (D) only

The correct answer is Option (2) → (A), (C) and (D) only

(A) In dissolution of partnership, business is not terminated, while in dissolution of firm business is terminated. True. This is correct because dissolution of partnership means only a change in the relationship among partners such as retirement, admission, or death, but the business continues, whereas dissolution of firm means that the business itself is closed down permanently.

(B) The Court intervenes in dissolution of Partnership because a partnership is not dissolved by mutual agreement. A firm can not be dissolved by court order. False. This is incorrect because a partnership can indeed be dissolved by mutual agreement and there is no need for court intervention, while a firm can also be dissolved by a court order under certain circumstances such as misconduct or incapacity of a partner.

(C) Economic relationships between partners continue in a changed form in dissolution of partnership. Economic relationships between the partners come to an end at the dissolution of the Firm. True. This is correct because in dissolution of partnership the partners may continue with the business in a reconstituted form, but in dissolution of firm all economic relations between the partners are completely terminated.

(D) Dissolution of Partnership doesn't require permanent closure of books, while in Dissolution of firm books are closed. True. This is correct because in dissolution of partnership the business goes on and the books remain active, but in dissolution of firm the business ends and the books must be closed permanently.