Question

If the number of partners in a firm falls below two, the firm stands ________. (Fill in the blank by choosing correct option)
a) dissolved
b) established
c) Realisation
d) None of these

Answer 1

C ........IS THE ANSWER.....I THINK..

Answer 2

Answer:

a) Dissolved

Explanation:

If the number of partners in a firm falls below two, the firm stands dissolved.

According to the 1932 Indian Partnership Act, a partnership company must be formed by at least two individuals. Thus, if the minimum amount of employees in any instance drops below two, the partnership company will be dissolved automatically.

All assets and liabilities are transmitted to the Realization Account at their book values in order to determine the right quantity of profit or loss on the eve of a partnership company's dissolution.