Multiple choice

If a business of partnership is suffering continuous losses, then any partner can file a suit for dissolution.

  1. True

  2. False

  3. Partly true

  4. Cannot say
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A Correct answer
Explanation

Under the Indian Partnership Act, if a partnership business is suffering continuous losses, any partner has the right to file a suit for dissolution of the firm. Continuous losses indicate that the business is not viable and partners should not be forced to continue in an unprofitable venture. This is a valid ground for dissolution recognized by law.

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