Question

The dissolution of partnership between all partners of a firm is called _________.

• A. The dissolution of the firm
• B. Compulsory dissolution
• C. Dissolution by notice
• D. Dissolution by government

Answer 1

The correct option is A The dissolution of the firm

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. Hence, the dissolution of partnership between all partners of a firm is called the dissolution of the firm.