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JAMB Commerce 1994 Question 8

Question 8

Business Units

Compulsory dissolution of a business can arise from

  1. A.an agreement by the owners
  2. B.a declaration by a court of law
  3. C.the termination of its life
  4. D.an unfavourable economic climate.
Show the answer and explanation

Answer: B (a declaration by a court of law)

Explanation

Compulsory dissolution is ordered by a court; dissolution agreed by the owners is voluntary.