Many partnerships provide for the admission of new partners or withdrawals of present partners in the partnership agreement so that the firm may continue to operate without executing a new agreement.

True/False

The statement is: False.

Explanation:

A partnership is an organization where two or more owners operate a business. They share the profits in proportion to their percentage partnership interest. There are two types of partnerships: general partnerships (unlimited liability) and limited partnerships (the liability is proportional to the amount of the money the partners contribute to the partnership).

If one of the partners retires, wants to exit the partnership, passes away or if a new partner will be added, the partnership is dissolved and a new partnership is formed.