A partner can be admitted to a partnership by either selling his or her interest to another person, or distributing cash or other assets of the partnership to the partner in settlement of his or her interest."

A. True.

b. False.

Question

Business

Darryl Webb

24 December, 12:25

A partner can be admitted to a partnership by either selling his or her interest to another person, or distributing cash or other assets of the partnership to the partner in settlement of his or her interest."

A. True.

b. False.

+5

Answers (1)

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April Buck · Answer 1

FALSE

Explanation:

A partner cannot distribute any property either cash or other assets to any person in settlement of his or her interest. There are two ways that a partner can be admitted to the partnership provided that it is agreed by the partners: (1) buy acquiring the interest of the partners. It a contract between old partners and the possible new partner. The book of the partnership has nothing to do with this transaction except for the transfer of interest from old partner and the acquiree. (2) to invest in the partnership; either cash, other asset or industry.

A partner can be admitted to a partnership by either selling his or her interest to another person, or distributing cash or other assets of the partnership to the partner in settlement of his or her interest."A. True.b. False.

A partner can be admitted to a partnership by either selling his or her interest to another person, or distributing cash or other assets of the partnership to the partner in settlement of his or her interest."

A. True.

b. False.