Match List-I with List-II.
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List-I |
List-II |
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(A) Dissolution by notice |
(I) Partnership at will |
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(B) Dissolution by agreement |
(II) When a partner becomes insane |
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(C) Dissolution by court |
(III) With the consent of all partners |
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(D) Compulsory Dissolution |
(IV) When the business of the firm becomes illegal |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A) - (I), (B) - (III), (C) - (II), (D) - (IV)
Each mode of dissolution has its own ground:
(A) Dissolution by notice — this matches (I) Partnership at will. Where the partnership has no fixed term, any partner may dissolve it by written notice.
(B) Dissolution by agreement — this matches (III) With the consent of all partners.
(C) Dissolution by court — this matches (II) When a partner becomes insane. The court may order dissolution on a partner’s suit.
(D) Compulsory Dissolution — this matches (IV) When the business of the firm becomes illegal. The firm cannot go on, whatever the partners wish.
NCERT (2026-27 edition):
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