Question

Dissolution of partnership firm may take place by ______.

• A. Admission of a new partner
• B. Change in existing profit-sharing ratio among partners
• C. Dissolution of agreement
• D. Retirement of a partner

Answer 1

The correct option is C Dissolution of agreement

Dissolution of a partnership firm may take place without the intervention of court or by the order of a court, in any of the ways specified. It may be noted that dissolution of the firm necessarily brings in dissolution of the partnership. Dissolution by agreement is one of the way a firm can be dissolved, A firm is dissolved:

a. With the consent of all the partners or

b. In accordance with a contract between the partners.