Practicing Success
Considering the facts related to dissolution of partnership firm, what are the ways available? A. Dissolution by Agreement B. Dissolution by Court C. Compulsory Dissolution D. Dissolution on retirement of a partner E. Dissolution by Notice Choose the correct answer from the options given below : |
A, B, C and D only A, B, C and E only B, C, D and D only C, D, E and A only |
A, B, C and E only |
The correct answer is option (2) : A, B, C and E only Dissolution on retirement of a partner- On retirement of a partner, the firm is reconstituted not dissolved. Dissolution of a firm takes place in any of the following ways: 1. Dissolution by Agreement: A firm is dissolved : (a) with the consent of all the partners or (b) in accordance with a contract between the partners. 2. Compulsory Dissolution: A firm is dissolved compulsorily in the following cases: 3. On the happening of certain contingencies: Subject to contract between the partners, a firm is dissolved : 4. Dissolution by Notice: In case of partnership at will, the firm may be dissolved if any one of the partners gives a notice in writing to the other partners, signifying his intention of seeking dissolution of the firm. 5. Dissolution by Court: At the suit of a partner, the court may order a partnership firm to be dissolved on any of the following grounds: |