Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

Which factor is essential for admitting a new partner to a partnership firm?

Options:

Approval from the firm's creditors

Approval from government authorities

Unanimous agreement of existing partners

Consent of the senior partner

Correct Answer:

Unanimous agreement of existing partners

Explanation:

For admitting a new partner to a partnership firm, the unanimous agreement of the existing partners is typically essential. This means that all the current partners must agree and give their consent to the admission of a new partner. The partnership deed may also specify the requirements and procedures for admitting a new partner, but the unanimous agreement of the existing partners is a fundamental factor in the decision-making process.