Which of the following combination of statements are true about dissolution-(A) A firm is compulsorily dissolved when a partner decide to retire.(B) Dissolution of a partnership is different from dissolution of a firm.(C) A partnership is dissolved when there is a death of a partner.(D) Dissolution of a firm necessarily involves dissolution of partnership.Choose the correct answer from the options given below:
- A(A), (B) and (D) only
- B(A), (B) and (C) only
- C(B), (C) and (D) only
- D(A), (C) and (D) only
Solution & Step-by-step Explanation
Let's assess the partnership statements:(A) False: Retirement only leads to dissolution of the partnership relations among original composition; the remaining members can choose to continue the firm.(B) True: Dissolution of partnership means restructuring the relations, while dissolution of the firm implies complete cessation of business actions.(C) True: The existing partnership structure dissolves upon a partner's death.(D) True: Shutting down the entire commercial firm naturally brings an automatic end to any internal partnership connection.Statements (B), (C), and (D) are correct.