I. Settlement of debts II. Cessation of business III. Introduction of assets IV. Disposal of assets
Which of these constitutes dissolution of partnership?
A. I,II and III only B. I,II and IV only C. II and IV only D. II and III and IV only
Correct Answer: B
Explanation
Bankruptcy of a partner, illegality of object of the business, expiration of the time given, non performance of the business, admission of a new partner, withdrawal or retirement of partners give rise to dissolution of partnership.
