According to Section 39 of the Partnership Act, 1932, the dissolution of partnership between all the partners of a firm is called the dissolution of the firm.
This section distinguishes between:
- Dissolution of partnership → Changes in the relationship between some partners (like retirement or admission of a partner)
- Dissolution of firm → Complete termination of the partnership relationship between all partners, bringing the business to an end
Section 39 specifically addresses the dissolution of the firm, which is the more comprehensive dissolution involving all partners and resulting in the closure of the firm's business operations.
The correct option is 39.