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Under Section 47, after dissolution the authority of partners to bind the firm continues only:
ASo far as necessary to wind up the firm and complete unfinished transactions
BFor new business too
CFor all purposes indefinitely
DUntil the next financial year
Answer & Solution
Correct answer: A. So far as necessary to wind up the firm and complete unfinished transactions
Section 47 continues the partners' mutual authority only so far as necessary to wind up the firm's affairs and finish pending transactions; the firm is not bound by an insolvent partner's acts.
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