Match List-I with List-II
|
List-I |
List-II |
|
(A) Dissolution of firm by agreement |
(I) When a partner becomes insane |
|
(B) Compulsory dissolution of firm |
(II) With the consent of all partners |
|
(C) Dissolution of firm by notice. |
(III) When business of a firm becomes illegal |
|
(D) Dissolution of firm by Court |
(IV) At the request of any one partner |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A)-(II), (B)-(III), (C)-(IV), (D)-(I)
| List-I | Correct Match | Reason |
|---|---|---|
| (A) Dissolution of firm by agreement | (II) With the consent of all partners | A firm may be dissolved by mutual consent or agreement of all partners (Section 40, Indian Partnership Act). |
| (B) Compulsory dissolution of firm | (III) When business of a firm becomes illegal | Dissolution becomes compulsory when the firm’s business becomes unlawful or illegal (Section 41). |
| (C) Dissolution of firm by notice | (IV) At the request of any one partner | In a partnership at will, any partner may dissolve the firm by giving notice to the others (Section 43). |
| (D) Dissolution of firm by Court | (I) When a partner becomes insane | The Court may order dissolution when a partner becomes of unsound mind or permanently incapable (Section 44). |