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There is compulsory dissolution of the firm:
  • a)
    On the death of majority of partners
  • b)
    On the insolvency of all the partners
  • c)
    In the case of continuous losses
  • d)
    In the case of deadlock in the management.
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
There is compulsory dissolution of the firm:a)On the death of majority...
A firm is compulsorily dissolved:

(i) By the adjudication as insolvent of all the partners or of all partners except one.

(ii) By the happening of any event which makes it unlawful for the business of the firm to be carried on or for the partners to carry it on in partnership.
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There is compulsory dissolution of the firm:a)On the death of majority of partnersb)On the insolvency of all the partnersc)In the case of continuous lossesd)In the case of deadlock in the management.Correct answer is option 'B'. Can you explain this answer?
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