Question

Write any three differences between Dissolution of Partnership and Dissolution of Firm.

Answer 1

Dissolution of Partnership:

• In the case of dissolution of the partnership, only one or more of the partners terminate their connections with the firm.
• Dissolution of partnership may or may not bring the business of the firm to an end.
• In the dissolution of the partnership, the business will continue even after dissolution.

Dissolution of Firm:

• Whereas all the partners terminate their connections with the firms in the case of dissolution of the firm.
• But the dissolution of the firm brings the business of the firm to an end.
• But business cannot be continued in the case of dissolution of the firm.

Answer 2

Nature of Difference	Dissolution of Partnership	Dissolution of Firm
Meaning	Dissolution of a partnership refers to the discontinuance of the relationship between the partner and other part­ners of the firm.	Dissolution of the firm implies that the entire firm ceases to exist, including the relationships among all the partners.
Nature	Voluntary	Voluntary or compulsory
Business	The business of the firm continues as before	The business of the firm comes to an end.