Which of the following is false for dissolution of partnership firm?
This question was previously asked in
Shift 25/05/2023 8:30 AM - 10:30 AM
A
Dissolution of a partnership is different from dissolution of a firm.
B
A partnership is dissolved when there is death of a partner
C
A firm is compulsorily dissolved when a partner decide to retire.
D
A firm is dissolved when all partners give consent to it.
Correct Answer
A firm is compulsorily dissolved when a partner decide to retire.
Detailed Explanation
False. A firm is not necessarily compulsory dissolved when a partner decides to retire.
The dissolution of a partnership typically depends on the terms and conditions outlined in the partnership agreement. In many cases, partnerships have provisions for the retirement of a partner, which may involve a buyout of the retiring partner's share or the admission of a new partner to replace them. The specific circumstances of the partnership and the partnership agreement will determine what happens when a partner retires.
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More CUET Questions
1
Following are various reasons for which a partnership firm can be dissolved. Which of the following will lead to compulsory dissolution? A. With consent of all partners.
B. When business becomes illegal.
C. When a partner dies.
D. When all partners become insolvent.
E. When a partner becomes insane. Choose the correct answer from the options given below:
2
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3
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A. Increase in value of creditors is added.
B. Increase in income received in advance is added.
C. Decrease in value of inventory is deducted.
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E. Conversion of debentures into shares is deducted.
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3. D & E only
4. A & E only
4
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