Question

Which of the following are true or false?

(a) Dissolution of a firm is a wider concept
(b) It includes dissolution of the partnership also

• A. Both (a) and (b) are true.
• B. Both (a) and (b) are false.
• C. (a) is true, but (b) is false.
• D. (a) is false, but (b) is true.

Answer 1

The correct option is A Both (a) and (b) are true.

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. The dissolution of partnership between all partners of a firm is called the dissolution of the firm. Hence, it is wider concept.