[Solved] If any event happens which makes it unlawful for the business of the firm to be carried on or for the partners to carry it on it partnership, then

Q.	If any event happens which makes it unlawful for the business of the firm to be carried on or for the partners to carry it on it partnership, then
A.	Firm is compulsorily dissolved
B.	Partnership is reconstituted
C.	Firm becomes an illegal association
D.	Firm is declared insolvent
Answer» A. Firm is compulsorily dissolved

728

Do you find this helpful?

View all MCQs in

Fundamentals of Laws and Ethics

Discussion

No comments yet

Related MCQs

Identify the incorrect statements: (1) When a firm is constituted for a fixed duration it cannot be dissolved before the expiry of that duration. (2) A partnership at will can be dissolved by the wish of even a single partner. (3) When a partner of a firm becomes lunatic, the firm dissolves automatically. (4) Even after dissolution, partners of a firm continue to be liable for acts of the firm until the affairs of the firm are finally wound up. Code:
Where the maximum number of partners in a firm carrying on banking business exceeds ten and in any other firm exceeds twenty, then the partnership becomes a:
A, B and C are partners of an unregistered firm. D owns this firm ` 1000 on a contract. The firm filed a suit against D the suit is dismissed for non-registration of the firm. The firm is registered later on. In this case which one of the following statements is MOST appropriate.
X, Y and Z are partners in a firm. X, without the authority of Y and Z buys certain shares in his name out of partnership money. Will 'shares' constitute partnership property?
A leaves a firm doing a particular business in Mumbai. He agrees with the other partners of the firm not to start a similar business as that of the firm in and around Mumbai for 3 years. This agreement is
X leaves a firm doing a particular business in Delhi. He agrees with other partners of the firm not to start a similar business as that of the firm in Delhi for 2 yea` This agreement is
The partners authority to act for the firm and to bind their co-partners continues even after the dissolution of the firm:
The relation of partnership arises from contract and not from status and in particular the Indian Partnership Act does not apply to the family business carried on by:
Partners are bound to carry on the business of the firm —
Where a firm constituted for a fixed term continues to carry on business after the expiry of the said term, the mutual rights and duties of the partners will —