Question

In which of the following ways a partnership firm may be dissolved?
I. Dissolution by Agreement
II. Compulsory dissolution
III. Dissolution by Notice
IV. Dissolution by court

• A. I and II.
• B. I and III.
• C. III and IV.
• D. I, II, III and IV.

Answer 1

The correct option is D I, II, III and IV.

According to the provisions of the Indian Partnership Act, 1932, dissolution of a firm means closing down the undertaking, suspending permanently the activities of a partnership business or a complete breakdown of a partnership. It can be dissolved in the following ways:

1. Dissolution by agreement.
2. Compulsory dissolution.
3. Dissolution by notice.
4. Dissolution by court.