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