Home › CBSE Class 12 (Commerce) › Accountancy › Accounting for Partnership Firms: Dissolution of a Partnership Firm › Which statement about dissolution is correct?
Which statement about dissolution is correct?
AA firm can be dissolved only by a court
BPartnership can be dissolved only by court
CFirm dissolution always ends the partnership
DPartnership dissolution always ends the firm
Answer & Solution
Correct answer: C. Firm dissolution always ends the partnership
When the firm is dissolved, the relationship among all partners ends, so the partnership is dissolved as well.
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