Multiple choice

On dissolution, the partners remain liable till

  1. accounts are settled

  2. partners' dues are paid off

  3. public notice is given

  4. the registrar strikes off the name
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Under the Indian Partnership Act, 1932, partners remain liable to third parties for acts done before dissolution until public notice of the dissolution is given. This notice protects innocent third parties who may still deal with the firm unaware of its dissolution.

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