A firm is unable to pay debts when ___________

A partner is insolvent

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A partner has debit balance

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The firm is insolvent

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None of these

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Solution

The correct option is C
The firm is insolvent

A firm is unable to pay debts when the firm is insolvent.

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Similar questions

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

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