Practicing Success
Consider the facts from the following related to compulsory dissolution of a partnership firm. (A) When all the partners or all but one partner, become insolvent, rendering them incompetent to sign a contract Choose the correct answer from the options given below. |
(A), (B) and (D) only (A), (B) and (E) only (A), (B) and (C) only (A), (B), (C) and (D) only |
(A), (B) and (E) only |
The correct answer is Option (2) → (A), (B) and (E) only (A) When all the partners or all but one partner, become insolvent, rendering them incompetent to sign a contract- Compulsory Dissolution 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: |