Reasons For Admission of New Partners - SS2 Accounting Past Questions and Answers - page 1
1
What is one reason for admitting new partners into a business partnership?
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A
To reduce the number of partners in the business
B
To decrease the amount of capital in the partnership
C
To increase the workload of existing partners
D
To bring in new skills and expertise to the partnership
2
Why might a partnership admit new partners as part of its succession planning?
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A
To dissolve the partnership
B
To ensure that the business will continue to operate and grow even if one of the existing partners exits the partnership
C
To increase the workload of the remaining partners
D
To reduce the amount of capital in the partnership
3
What is one potential benefit of admitting new partners to a partnership?
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A
Increased workload for existing partners
B
Decreased access to networks and resources
C
Diversification of skills and expertise
D
Reduced capital for the partnership
4
What might be a motivation for an existing partner to admit a new partner who provides additional capital?
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A
To decrease the amount of capital in the partnership
B
To increase the workload of existing partners
C
To diversify skills and expertise in the partnership
D
To support business operations, expansion or investment
5
What is one potential benefit of admitting new partners to a partnership?
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6
Why might a partnership admit new partners as part of its succession planning?
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