Y and Z are partners in a firm. If W is admitted as a new partner, what will happen?

Old partnership is reconstituted

The correct answer is Option (2) - Old partnership is reconstituted.

When a partnership firm undergoes reconstitution, it implies there are changes in the existing partnership agreement, such as the admission of new partners, retirement of existing partners, or changes in profit-sharing ratios.
Thus, on the admission of the partner W old partnership is reconstituted.