Question : Under dissolution on the happening of certain contingencies, a firm can be dissolved if——–
Option 1: a partner becomes insane
Option 2: a partner becomes insolvent
Option 3: The partnership formed for a particular venture is completed
Option 4: Both (2) and (3)
Correct Answer: Both (2) and (3)
Solution : Dissolution on the occurrence of specific controversies, Section 42. If the partnership was formed for a specific period of time, it will dissolve upon the following events: (a) the end of that period; (b) the conclusion of any adventures or undertakings; (c) the death of a partner; and (d) the designation of a partner as insolvent.
Hence the correct answer is option 4.
Question : Dissolution by agreement implies ——-
Option 1: Firm is dissolved with consent of all partners
Option 2: Firm is dissolved in accordance with contract between the partners
Option 3: Firm is dissolved by the partnership Deed
Option 4: Both (1) and (2)
Question : A partnership firm is compulsorily dissolved:
Option 1: When the business of the firm is declared illegal
Option 2: When a partner of the firm dies
Option 3: When a partner of the firm becomes insolvent
Option 4: When a partner transfers his share to some other person without the consent of other partners
Question : The dissolution of partnership between all the partners of a firm is called:
Option 1: Reconstitution of partnership firm
Option 2: Dissolution of partnership
Option 3: Dissolution of partnership firm
Option 4: Any of the above
Question : According to —— the dissolution of partnership between all the partners of a firm is called dissolution of the partnership firm.
Option 1: Section 38, of Indian partnership Act 1932
Option 2: Section 39, of Indian partnership Act 1932
Option 3: Section 32, of Indian partnership Act 1932
Option 4: Section 40, of Indian Partnership Act 1932
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