The statement is true. According to the provided context, there is a clear distinction between dissolution of partnership and dissolution of firm. In dissolution of partnership, the business continues and only the existing relationship between partners changes (e.g., due to admission, retirement, or change in profit-sharing ratio). Assets and liabilities are revalued, and a new balance sheet is drawn. However, in dissolution of firm, the business is completely closed, assets are sold, liabilities are paid off, books are closed, and the economic relationship between all partners comes to an end. The Partnership Act 1932 also recognises this difference, where dissolution of partnership between ALL partners is termed as dissolution of the firm.