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easyMCQCUET Accountancy 2022 20 July Shift 12026Accountancy
1 mark

A firm may not be dissolved by court in the following condition:

  1. A
    When a partner becomes permanently incapable of performing his duties as a partner.
  2. B
    When a partner is guilty of misconduct which is likely to adversely affect the business of the firm.
  3. C
    When a partner persistently commits breach of partnership agreement.
  4. D
    When all the partner give their consent for dissolution.

Solution & Step-by-step Explanation

Dissolution by mutual consent of all partners (Option D) is a voluntary dissolution under Section 40 of the Indian Partnership Act, 1932. It does not require intervention or an order by the Court. Options A, B, and C are grounds for dissolution by the Court under Section 44.

Practice this question

Try it yourself before checking the explanation above.

A firm may not be dissolved by court in the following condition:
A
When a partner becomes permanently incapable of performing his duties as a partner.
B
When a partner is guilty of misconduct which is likely to adversely affect the business of the firm.
C
When a partner persistently commits breach of partnership agreement.
D
When all the partner give their consent for dissolution.

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