When the firm goes bankrupt, or it is ordered by a court to dissolve for illegal practices, it is called dissolution of the .
A
business
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B
agreement
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C
firm
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D
partnership
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Solution
The correct option is C firm When the firm goes bankrupt, or it is ordered by a court to dissolve for illegal practices, it is called dissolution of the firm. When the partnership between all the partners of a firm is dissolved, then it is called dissolution of a firm. It is important to note that the relationship between all partners should be dissolved for the firm to be dissolved.