Choose the odd one out. The court has the option to order dissolution of a firm, where
1. a partner is of sound mind.
2. a partner do not suffer from permanent in capacity.
3. a partner is not guilty of misconduct of the business.
4. a partner transfers his interest or share to a third party.
Select the correct answer:
A. Both 1 and 2
B. Only 3
C. Both 2 and 3
D. Only 4
Answer: Option B
This Question Belongs to Commerce >> Accounting
The correct answer is D. Only 4✅
Under the Indian Partnership Act, 1932, the court may order dissolution on certain grounds, including when a partner transfers his whole interest in the firm to a third party.
The other statements describe situations where dissolution would not ordinarily be ordered:
1. Partner is of sound mind ❌
2. Partner does not suffer from permanent incapacity ❌
3. Partner is not guilty of misconduct ❌
4. Partner transfers his interest/share to a third party ✅
👉 Answer: D. Only 4