A firm is compulsorily dissolved when all partners or when all except one partner become insolvent. True or False.

None of these

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Not sure

No worries! We‘ve got your back. Try BYJU‘S free classes today!

False

No worries! We‘ve got your back. Try BYJU‘S free classes today!

True

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D
True

True. A firm is compulsorily dissolved when all partners or when all except one partner become insolvent as the partner becomes incompetent to sign the contract.

Suggest Corrections

Similar questions

In case, all the partners or all except one partner become insolvent or insane, such dissolution is known as __________

A partnership is dissolved when there is a death of a partner. True or False

If all or all but one of the partners of the firm becomes insolvent then the company is a case of ___________

Join BYJU'S Learning Program