Question

Select the most appropriate alternative from those given below :

All activities of the partnership firm cease (stop) on ____________ of firm.
a) dissolution
b) admission
c) retirement
d) None of these

Answer 1

All activities of the partnership firm cease (stop) on dissolution of firm.

Explanation: Dissolution of a partnership firm involves discontinuance of the firm’s business, besides the termination of the existing partnership deed. Thus, at the time of dissolution of a partnership firm, all the activities of the firm tend to cease.