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easyMCQCUET Accountancy 2025 27 May Shift 22026Accountancy
1 mark

In which of the following ways does the dissolution of a firm take place?(A) Dissolution by agreement(B) Compulsory dissolution(C) On the happening of certain contingencies(D) Dissolution by noticeChoose the correct answer from the options given below:

  1. A
    (A), (C) and (D) only
  2. B
    (A), (B) and (D) only
  3. C
    (A), (B), (C) and (D)
  4. D
    (B), (C) and (D) only

Solution & Step-by-step Explanation

Under Sections 40 to 43 of the Indian Partnership Act, 1932, a firm can be dissolved through several distinct modes:Section 40: Dissolution by Agreement (A)Section 41: Compulsory Dissolution (B)Section 42: Dissolution on the happening of certain contingencies (C)Section 43: Dissolution by Notice (D)Therefore, all four options are valid legal modes of dissolving a firm.

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Try it yourself before checking the explanation above.

In which of the following ways does the dissolution of a firm take place?(A) Dissolution by agreement(B) Compulsory dissolution(C) On the happening of certain contingencies(D) Dissolution by noticeChoose the correct answer from the options given below:
A
(A), (C) and (D) only
B
(A), (B) and (D) only
C
(A), (B), (C) and (D)
D
(B), (C) and (D) only

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