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Compulsory dissolution of a business can arise from

Compulsory dissolution of a business can arise from
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A An agreement by the owners
  • B A declaration by a court of law
  • C The termination of its life
  • D An unfavourable economic climate
Correct Answer: Option B
Explanation:
Compulsory dissolution occurs when a business is legally required to cease its operations. This can arise through a declaration or order of a court of law. Unlike voluntary dissolution, which may result from the decision of the owners, compulsory dissolution is imposed through legal authority.

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