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easyMCQCUET Accountancy 2025 22 May Shift 12026Accountancy
1 mark

When a firm is dissolved with the consent of all the partners, it is called:

  1. A
    Compulsory Dissolution
  2. B
    Dissolution by Notice
  3. C
    Dissolution by Court
  4. D
    Dissolution by Agreement

Solution & Step-by-step Explanation

According to Section 40 of the Indian Partnership Act, 1932, a firm can be dissolved at any time with the explicit consensus and consent of all partners. This method is designated as Dissolution by Agreement.

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When a firm is dissolved with the consent of all the partners, it is called:
A
Compulsory Dissolution
B
Dissolution by Notice
C
Dissolution by Court
D
Dissolution by Agreement

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