Which of the following statements truly makes the distinction between Dissolution of Partnership and Dissolution of Firm:(A) In dissolution of partnership, business is not terminated, while in dissolution of firm business is terminated.(B) The Court intervenes in dissolution of Partnership because a partnership is not dissolved by mutual agreement. A firm can not be dissolved by court order.(C) Economic relationships between partners continue in a changed form in dissolution of partnership. Economic relationships between the partners come to an end at the dissolution of the Firm.(D) Dissolution of Partnership doesn't require permanent closure of books, while in Dissolution of firm books are closed.Choose the correct answer from the options given below:
- A(A), (B) and (D) only
- B(A), (C) and (D) only
- C(A), (B), (C) and (D)
- D(B), (C) and (D) only
Solution & Step-by-step Explanation
Analyzing the statements:(A) Correct: Partnership dissolution means reconstitution, business goes on. Firm dissolution shuts the business.(B) Incorrect: The Court can order the dissolution of a firm under Section 44 of Indian Partnership Act. It does not typically intervene for simple partnership changes.(C) Correct: Relationship alters in partnership reconstitution but fully drops/ends when the firm ceases to exist.(D) Correct: Books are closed fully only during the dissolution of the firm.Thus, statements (A), (C), and (D) provide the proper distinctions.