Which combination of statements is true about dissolution?

(A) Dissolution of a partnership is different from dissolution of a firm.
(B) A partnership is dissolved when there is a death of a partner.
(C) A firm is dissolved when all partners give consent to it.
(D) A firm is compulsorily dissolved when a partner decides to retire.

Choose the correct answer from the options given below:

(A), (B) and (C) only

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

(A) Dissolution of a partnership is different from dissolution of a firm. This is correct. Dissolution of partnership means reconstitution of partnership firm whereas dissolution of firm means end of the partnership firm.

(B) A partnership is dissolved when there is a death of a partner. This is correct. This is case of dissolution of firm on happening of certain contingency.
On the happening of certain contingencies: Subject to contract between the partners, a firm is dissolved :
(a) if constituted for a fixed term, by the expiry of that term;
(b) if constituted to carry out one or more ventures, by the completion thereof;
(c) by the death of a partner;
(d) by the adjudication of a partner as an insolvent.

(C) A firm is dissolved when all partners give consent to it. This is correct. This is case of dissolution of firm by agreement between partners.
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.

(D) A firm is compulsorily dissolved when a partner decides to retire. This is incorrect as the firm is not dissolved on the retirement of a partner. It is reconstituted.
Compulsory Dissolution: A firm is dissolved compulsorily in the following cases:
(a) when all the partners or all but one partner, become insolvent, rendering them incompetent to sign a contract;
(b) when the business of the firm becomes illegal; or
(c) when some event has taken place which makes it unlawful for the partners to carry on the business of the firm in partnership, e.g., when a partner who is a citizen of a country becomes an alien enemy because of the declaration of war with his country and India.

So, the correct answer is option 2 (A), (B) and (C) only.