Which combination of statements is true about dissolution- (A) Dissol…

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

The key is the difference between the partnership (the agreement among particular partners) and the firm (the business they run). Any change among the partners ends the old partnership, but the firm can carry on; the firm ends only when its business is wound up.

(A) Dissolution of a partnership is different from dissolution of a firm. True. On dissolution of a partnership the business goes on with a new agreement; on dissolution of the firm the business closes and its books are closed.

(B) A partnership is dissolved when there is a death of a partner. True. The old agreement ends with the partner’s death, though the surviving partners may continue the firm.

(C) A firm is dissolved when all partners give consent to it. True. This is dissolution by agreement: the partners who made the firm can end it together.

(D) A firm is compulsorily dissolved when a partner decides to retire. False. Retirement ends the partnership, not the firm; the remaining partners usually carry on the business under a new agreement. Compulsory dissolution happens in cases such as all partners (or all but one) becoming insolvent or the business becoming illegal.