Which of the following will lead to dissolution of partnership firm?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- With the consent of all the partners.
With the consent of all the partners, a partnership firm can dissolved. All others are mode of reconstitution of the firm.
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.
Reconstitution of the partnership firm takes place in the following ways-
* Admission of a new partner
* Change in profit sharing ratio
* Retirement of a partner
* Death of a partner