Practicing Success
Practicing Success
CUET Preparation Today
| A newly admitted partner in the partnership firm acquires the right to: |
Share in the assets of the firm Share in the future profits Both option 1 and 2 None of these |
| Both option 1 and 2 |
| 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. A newly admitted partner acquires two main rights in the firm– 1. Right to share the assets of the partnership firm; and 2. Right to share the profits of the partnership firm. |
