Question

A firm is dissolved with the consent of all the partners or in accordance with a contract between the partners is known as ______

Options

• Dissolution by Agreement

• Compulsory Dissolution

• Dissolution by Notice

• Dissolution by Court

Answer 1

A firm is dissolved with the consent of all the partners or in accordance with a contract between the partners is known as Dissolution by Agreement.

Explanation:

A partnership firm can be dissolved without the participation of the court or by a court order.

A firm is dissolved in one of two ways:

1. with the consent of all partners, or
2. in line with a contract between the partners.