Match the LIST-I with LIST-II
| LIST-I | LIST-II | ||
| A. | Business has become illegal | I. | Dissolution by Court |
| B. | When a partner is guilty of misconduct | II. | Compulsory dissolution |
| C. | Firm is dissolved with the consent of all the partners | III. | Dissolution by Agreement |
| D. | Death of a partner | IV. | Firm dissolution on the happening of certain contingencies |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → A-II, B-I, C-III, D-IV
A firm may be dissolved in five ways: by agreement, compulsorily, on the happening of certain contingencies, by notice, or by the court. Each List-I situation falls under one of them.
(A) Business has become illegal — this matches (II) Compulsory dissolution. When the business of the firm becomes illegal, the firm must be dissolved by law, whatever the partners want.
(B) When a partner is guilty of misconduct — this matches (I) Dissolution by Court. Misconduct likely to harm the business is one of the grounds on which the court may order dissolution at the suit of a partner.
(C) Firm is dissolved with the consent of all the partners — this matches (III) Dissolution by Agreement. A firm can be dissolved with the consent of all the partners or under a contract between them.
(D) Death of a partner — this matches (IV) Firm dissolution on the happening of certain contingencies. Subject to the contract between the partners, the firm is dissolved by the death of a partner, as also by the expiry of its term or the completion of its venture.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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