Which of the following statements are true or false?

Statement 1:  Dissolution of a partnership is different from dissolution of a firm.
Statement 2:  A partnership is dissolved when there is a death of a partner.
Statement 3: A firm is dissolved when all partners give consent to it.

All statements are true

The correct answer is option 4- All statements are true.

Statement 1:  Dissolution of a partnership is different from dissolution of a firm. This is true. The reconstitution of a partnership firm which takes place on account of admission, retirement or death of a partner. In such a situation while the existing partnership is dissolved, the firm may continue under the same name if the partners so decide. In other words, it results in the dissolution of a partnership but not that of the firm. 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.

Statement 2:  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 case of death of a partner because other partners continue business.

Statement 3: A firm is dissolved when all partners give consent to it. This is true. It is Dissolution by Agreement where a firm is dissolved :
(a) with the consent of all the partners or
(b) in accordance with a contract between the partners.