CUET Preparation Today
A new partner can be admitted: |
By the consent of the majority of partners By draw of lot By the consent of all partners At the desire of any one partner |
By the consent of all partners |
The correct answer is option 3- By the consent of all partners. A new partner can be admitted by the consent of all partners. When firm requires additional capital or managerial help or both for the expansion of its business a new partner may be admitted to supplement its existing resources. According to the Partnership Act 1932, a new partner can be admitted into the firm only with the consent of all the existing partners unless otherwise agreed upon. With the admission of a new partner, the partnership firm is reconstituted and a new agreement is entered into to carry on the business of the firm. |
