Multiple choice

When there is a change in relations between partners, it is called

  1. dissolution of a firm

  2. dissolution of partnership

  3. Both (1) and (2)

  4. None of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Option (1) is incorrect: The dissolution of partnership between all the partners of a firm is called the dissolution of a firm. Option (2) is correct: A change in relations between the partners is called dissolution of partnership.