Multiple choice

A partnership firm is compulsorily dissolved where

  1. all partners have become insolvent

  2. firm's business has become unlawful

  3. the fixed term has expired

  4. in cases (1) and (2) only
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Under Section 44 of the Indian Partnership Act, a firm is compulsorily dissolved when all partners or all but one become adjudicated insolvent, or when the firm's business becomes unlawful. Expiration of fixed term is not a compulsory dissolution but occurs by agreement.

Keep practicing — related questions