Which of the following will lead to the dissolution of a partnership firm?
- AAdmission of a partner
- BWith the consent of all the partners.
- CDeath of a partner
- DRetirement of a partner
Solution & Step-by-step Explanation
Admission, death, and retirement of a partner lead to the reconstitution of the partnership (dissolution of partnership, but not necessarily the firm). However, dissolution of the partnership firm itself can happen under Section 40 of the Indian Partnership Act, 1932 with the consent of all the partners, which brings the entire business operations to an end.