Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:
In a partnership firm, partner A becomes an unsound mind, but partner B wants to continue the business. What will happen in that case?
Options:
Dissolution of Partnership of A and B
Dissolution of firm by Court
A can continue his business with just the name of B
A can continue business all alone
Correct Answer:
Dissolution of firm by Court
Explanation:
Court may pass the order to dissolve the firm if any partner becomes an unsound mind.