CUET Preparation Today
A, B and C are partners in a firm. If D is admitted as a new partner, then what will happen? |
Old firm is dissolved Old firm and old partnership is dissolved Old Partnership is reconstituted None of these |
Old Partnership is reconstituted |
The correct answer is option 3- Old Partnership is reconstituted. The partnership is an agreement between two or more persons for sharing the profits of a business carried on by all or any one of them acting for all. Any change in the existing agreement is known as reconstitution of the partnership firm. Admission of he new partner leads to reconstitution of the firm. |
