Tag: dissolution of partnership

Questions Related to dissolution of partnership

Where the continuing partners carry on the business of the firm, the outgoing partner whose claim is not settled.
X. is entitled to share of profits since date of cessation as partner.
Y. is not entitled to claim anything other than unsettled amount
Z. is entitled to $6\%$ interest p.a. on the unsettled amount.
Select the correct answer from the options given.

  1. Y is correct

  2. Only X is correct

  3. Only Z is correct

  4. Either X or Z at his option


Correct Option: D

A, B, C are partners on death of B, A and C continue the firm's business. This is a case of ________.

  1. Dissolution of partnership

  2. Dissolution of firm

  3. Death of partnership

  4. All of the above


Correct Option: A

A firm is compulsory dissolved if ___________.

  1. All partners are adjudicated insolvent

  2. All of the partners but one, are adjudicated insolvent

  3. Both (A) & (B)

  4. Either (A) or (B)


Correct Option: D

If all partners, or all but one partner, of the firm are declared insolvent ___________.

  1. Firm is also declared insolvent

  2. Solvent partner has to repay the debts of the firm

  3. Firm is automatically dissolved

  4. Firm can be continued


Correct Option: C

In which of the following case, the Court may, at the suit of a partner, dissolve a firm?

  1. If a partner has become of unsound mind, the firm is dissolved on a petition made by any of the other partners or by the next friend of the insane partner

  2. A partner becomes permanently incapable of performing his duties as a partner

  3. If a partner is found guilty of conduct which is likely to affect the carrying on of business of the firm then application to Court shall be made by any partner who is not guilty of misconduct for dissolution of firm

  4. All of the above


Correct Option: D

A firm may be dissolve where ___________ that it shall be dissolved.

  1. All the partners agree

  2. Majority of partners agree

  3. Partners by majority agree

  4. $3/4$th partners agree


Correct Option: A

Identify which of the following statement is true and which is false.
(I) The Court may dissolve a firm if a partner conducts himself in such a way that if is not reasonably practicable for the other partners to carry on business in partnership with him.
(II) If the firm has been continuously suffering losses and it is apparent that in future also the business cannot be carried on except at a loss, the Court cannot order dissolution of the firm
Select the correct answer from the options given.

  1. (I)-True, (II)-False

  2. (I)-False, (II)-False

  3. (I)-False, (II)-True

  4. (I)-True, (II)-True


Correct Option: D

The Court may dissolve a firm if a partner _________ commits breach of agreements relating to management of the affairs of the firm or the conduct of the firm's business.

  1. Wilfully

  2. Persistently

  3. Neither (A) nor (B)

  4. Both (A) and (B)


Correct Option: D

In which of the following case, the Court may, at the suit of a partner. dissolve a firm?

  1. Partner wilfully and persistently commits breach of partnership agreement as management

  2. Partner conducts himself in such a way that it is not reasonably practicable for the other partners to carry on business in partnership with him

  3. The firm has been continuously suffering losses and in future also the business cannot be carried on except at a loss

  4. All of the above


Correct Option: D

In which of the following case, the Court may, at the suit of a partner, dissolve a firm?

  1. If it can be proved to the satisfaction of the court that it is just and equitable to dissolve the firm

  2. If a partner has become of unsound mind and any other partner or next friend of insane partner files petition for dissolution of firm

  3. Partner conducts himself in such a way that it is not reasonably practicable for the other partners to carry on business in partnership with him

  4. All of the above


Correct Option: D