Practicing Success
Which of the following is not a case of dissolution of a partnership firm on happening of certain contingencies? |
When a partner dies When the business of the firm becomes illegal By the completion of one or more ventures for which the partnership is formed By the adjudication of a partner as an insolvent. |
When the business of the firm becomes illegal |
The correct answer is option 2- When the business of the firm becomes illegal. * When the business of the firm becomes illegal is a case of compulsory dissolution. Under certain circumstances, a partnership firm may be dissolved based on the following contingencies subject to contract between the partners: |