Multiple choice

Compulsory Dissolution includes

  1. dissolution by the adjudication of all the partners or of all the partners but one as insolvent

  2. dissolution by the business of the firm becoming unlawful

  3. both (1) and (2)

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Compulsory dissolution occurs by operation of law, not partner choice. When all partners or all but one are adjudicated insolvent, or the business becomes unlawful, dissolution is mandatory. Option C correctly lists both compulsory grounds.

Keep practicing — related questions