Which statements are true about the dissolution of a partnership?

(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 compulsorily dissolved when a partner decide to retire.

(D) Dissolution of partnership can not take place without intervention of the court.

Choose the correct answer from the options given below:

(A) and (B) only

The correct answer is option 2- (A) and (B) only.

(A) Dissolution of a partnership is different from dissolution of a firm.  THIS IS TRUE.
According to Section 39 of the partnership Act 1932, the dissolution of partnership between all the partners of a firm is called the dissolution of the firm. That means the Act recognises the difference in the breaking of relationship between all the partners of a firm and between some of the partners; and it is the breaking or discontinuance of relationship between all the partners which is termed as the dissolution of partnership firm.

(B) A partnership is dissolved when there is a death of a partner. THIS IS TRUE.
Dissolution of partnership changes the existing relationship between partners but the firm may continue its business as before. The dissolution of partnership may take place in any of the following ways:
(1) Change in existing profit sharing ratio among partners;
(2) Admission of a new partner;
(3) Retirement of a partner;
(4) Death of a partner;
(5) Insolvency of a partner;
(6) Completion of the venture, if partnership is formed for that; and
(7) Expiry of the period of partnership, if partnership is for a specific period of time

(C) A firm is compulsorily dissolved when a partner decide to retire.  THIS IS NOT TRUE as firm is not dissolved in case of retirement. Reconstitution of the firm takes place.
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

(D) Dissolution of partnership can not take place without intervention of the court. THIS IS NOT TRUE. A partnership can be dissolved without intervention of court.