Question : Assertion (A): Dissolution of Partnership may or may not result into closing down of the business. Reason (R): Dissolution of Partnership firm means close down of business and comes to an end.
Option 1: Both Assertion (A) and Reason (R) are true and (A) is correct explanation of Reason (R).
Option 2: Both Assertion (A) and Reason (R) are true but (A) is not correct explanation of Reason (R).
Option 3: Assertion (A) is true but Reason (R) is false.
Option 4: Reason (R) is true but Assertion (A) is false.
Correct Answer: Both Assertion (A) and Reason (R) are true but (A) is not correct explanation of Reason (R).
Solution : Both statements are true but both are different statements. The assertion is showing the concept of dissolution of the partnership but the reason is about the dissolution of the partnership firm. Hence, the correct option is 2.
Question : Assertion (A): Dissolution of Partnership results in no change in the economic relationship. Reason (R): Dissolution of Partnership firm results in the ending of the economic relationship.
Question : Assertion (A): Dissolution of the firm means the dissolution of the partnership between all the partners of the firm.
Reason (R): Dissolution of the firm means the closure of business and therefore means dissolution of
Question :
Assertion (A): Dissolution of
Question : Assertion (A): A new business is likely to have lesser goodwill. Reason (R): Goodwill is an intangible asset.
Question : Assertion (A): Goodwill requires adjustment at the time of reconstitution of a firm. Reason (R): The nature and location of business do not affect the valuation of goodwill.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile