Practicing Success
In which of the circumstances, the partnership firm may be reconstituted? |
Admission of a partner Retirement/Death of a partner Change in profit sharing ratio All of the above |
All of the above |
The correct answer is option 4- All of the above. When a new partner is admitted to an existing partnership, it means that the existing partnership undergoes a change in its composition. The admission of a new partner does not mean the end of the existing partnership. Instead, the partnership continues its operations with the addition of the new partner. with new terms and conditions. Reconstitution of the partnership firm takes place in the following ways- |