Multiple choice

Death of partner has the effect of

  1. dissolving the firm

  2. result in continuance of the business of the firm

  3. his heirs joining the firm

  4. computation of profits upto the date of death
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Under the Indian Partnership Act, 1932, the death of a partner dissolves the firm automatically. While the remaining partners may continue the business after reconstitution, legally the original partnership stands dissolved on the death of any partner.

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