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Under Section 41, a firm is COMPULSORILY dissolved when:
AA partner retires
BAll partners, or all but one, are adjudicated insolvent, or the business becomes unlawful
CA partner dies
DThe fixed term expires
Answer & Solution
Correct answer: B. All partners, or all but one, are adjudicated insolvent, or the business becomes unlawful
Section 41 mandates compulsory dissolution where all or all-but-one partners are insolvent, or the business becomes unlawful.
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