Which mode of dissolving a firm is governed by section 41 of the Indian Partnership Act, 1932?
Question and options
Which mode of dissolving a firm is governed by section 41 of the Indian Partnership Act, 1932?
Compulsory dissolution
Dissolution on the happening of certain contingencies
Dissolution by notice of partnership at will
Dissolution by agreement
Answer and explanation
Correct answer: A - Compulsory dissolution
Section 41 of the Indian Partnership Act, 1932 provides for compulsory dissolution: by the adjudication of all partners or all but one as insolvent, or by an event making the business unlawful. Dissolution by agreement falls under section 40, dissolution on contingencies such as expiry of term or death under section 42, and dissolution by notice of a partnership at will under section 43.
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