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easyMCQCUET 2025 31 May Shift 12026CUET Accountancy
1 mark

Dissolution of a firm cannot take place in which of the situation-

  1. A
    Dissolution by Death
  2. B
    Dissolution by Agreement
  3. C
    Dissolution by Court
  4. D
    Voluntarily by one partner

Solution & Step-by-step Explanation

Under the Indian Partnership Act, 1932:A firm can be dissolved by Mutual Agreement (Section 40).A firm can be dissolved by the Court (Section 44) under specific circumstances like insolvency or misconduct.Unless contracted otherwise, the death of a partner can lead to the automated dissolution of the firm.Voluntarily by one partner: A single partner cannot arbitrarily dissolve a firm at their own solo whim unless the partnership is "At Will" and proper formal written notice is delivered to all other partners. Hence, a casual standalone decision without due procedure cannot unilaterally execute the dissolution of the entire firm structure.

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Try it yourself before checking the explanation above.

Dissolution of a firm cannot take place in which of the situation-
A
Dissolution by Death
B
Dissolution by Agreement
C
Dissolution by Court
D
Voluntarily by one partner

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