Multiple choice

At the time of dissolution of firm, ____ debts are settled first out of firm`s property.

  1. outsiders secured

  2. outsiders unsecured

  3. private debts of partners

  4. any of these
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A Correct answer
Explanation

The debts of outsiders, which are secured, are paid first. The unsecured outsiders, private debts of partners are paid in the order after the above debts.

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