Which of these constitutes dissolution of partnership?

Given:

I. Settlement of debts
II. Cessation of business
III. Introduction of assets
IV. Disposal of assets

A. II and IV only
B. I, II and IV only
C. I, II and III only
D. II, III and IV only

Correct Answer:

Option B – I, II and IV only

Explanation

Dissolution of partnership business simply means the break up of partnership business and which are caused by many factors
II, III and IV: disposal of asset does not constitute dissolution