The admission of a new partner to an existing partnership:

a. May be accomplished only by investing assets in the partnership.

b. Causes a legal dissolution of the existing partnership.

c. Requires purchasing the interest of one or more existing partners.

d. Is almost always accompanied by the liquidation of the business.

Question

Business

Captain Crunch

30 April, 02:27

The admission of a new partner to an existing partnership:

a. May be accomplished only by investing assets in the partnership.

b. Causes a legal dissolution of the existing partnership.

c. Requires purchasing the interest of one or more existing partners.

d. Is almost always accompanied by the liquidation of the business.

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Answers (1)

Know the Answer?

Irwin · Answer 1

The correct answer is letter "B": Causes a legal dissolution of the existing partnership.

Explanation:

A Partnership is an organization that operates a business with two or more owners. They share the profits in proportion to their partnership interest in percentage terms. There are two types of partnerships: general partnerships (unlimited liability) and limited partnerships (passive members who are responsible depending on how much money they contribute to the company).

Every time one of the partnership members passes away, retires, or another partner will be added, the existing partnership legally dissolves creating a new entity.