Question

Select the most appropriate alternative from those given below :

If the number of partners in a firm falls below two, the firm stands____________
a) dissolved
b) established
c) realisation
d) None of these

Answer 1

If the number of partners in a firm falls below two, the firm stands dissolved.

Explanation: As per the Indian Partnership Act of 1932, at least two people are required to form a partnership firm. Thus, if the minimum number of members falls below two, then the partnership firm gets automatically dissolved.