Question

Objective Type Questions :
Answer in one sentence only.

Why a new partner is admitted?

Answer 1

The following are a few reasons for which a new partner is admitted to a partnership firm:

a. For additional capital amount
b. For endowment of knowledge and skills possessed by him/her
c. To enhance a firm’s future growth prospects and progress
d. To compete with the other firms
e. To replace the outgoing partner at the time of retirement and death of a partner