Which of the following is false for dissolution of partnership firm?

The correct answer is Option (3) → A firm is compulsorily dissolved when a partner decide to retire.

Retirement of a partner only reconstitutes the partnership: the agreement changes but the remaining partners carry on the firm. It is not a case of compulsory dissolution, which arises only on insolvency of all (or all but one) partners or when the business becomes illegal.

Option (1) Dissolution of a partnership is different from dissolution of a firm. — A true statement. In dissolution of partnership the firm continues; in dissolution of the firm the business is closed.

Option (2) A partnership is dissolved when there is death of a partner — A true statement. Death ends the existing partnership agreement.

Option (4) A firm is dissolved when all partners give consent to it. — A true statement. This is dissolution by agreement.