ExamVeda
Login
Home

Choose the odd one out The court has the option to...

This question belongs to Commerce Accounting
Accounting
?

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:

Answer & Solution
Correct Answer: Option B
Let's discuss the solution. Join the discussion
Examveda
Question posted by Examveda
Community

Join the Discussion

1 Comment
Remesh A
Remesh A 3 months ago
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
Keep Learning

Related Questions on Accounting

Accounting provides information on
A. Cost and income for managers B. Company's tax liability for a particular year C. Financial conditions of an institutions D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets B. Fixed assets C. Intangible assets D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets B. Fixed assets C. Intangible assets D. Investments
Patents, Copyrights and Trademarks are
A. Current assets B. Fixed assets C. Intangible assets D. Investments
More Related Questions on Accounting