A newly admitted partner in the partnership firm acquires the right to:
Answer & explanation
Correct answer: option 3
The correct answer is option 3- Both options 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
2. Right to share the profits of the partnership firm.