Which of the following are the ways for the dissolution of a firm?(A) Dissolution by Notice(B) Dissolution by agreement(C) Dissolution by court(D) Dissolution by not terminating businessChoose the correct answer from the options given below:
- A(A), (B) and (C) only
- B(A), (C) and (D) only
- C(A), (B), (C) and (D)
- D(B), (C) and (D) only
Solution & Step-by-step Explanation
Dissolution of a firm means complete closure of the business operations. The recognized statutory modes under the Indian Partnership Act, 1932 include:Dissolution by Agreement (Section 40)Compulsory Dissolution (Section 41)Dissolution on happening of certain contingencies (Section 42)Dissolution by Notice of partnership at will (Section 43)Dissolution by Court (Section 44)Option (D) "Dissolution by not terminating business" is a logical contradiction because dissolution inherently requires termination of business. Thus, only (A), (B), and (C) are correct.