Question

state any two reasons for admitting a new partner​

Answer 1

Answer:

A new partner is admitted in to the firm so as to:-

1) Increase the capital of the firm for the expansion plans of the business.

2) Include a capable and efficint employee like a manager into partnership so as to encourage him.

3) To take advantage of the experience, reputation and goodwill of the incoming partner etc.

Answer 2

Any two reasons for admitting a new partner are -

1. Partnership is a form of business where two or more people form a partnership to manage and operate a particular business. The profit and the risk are shared equally in a partnership business. A partnership deed is created which forms to be the backbone of a partnership business. There is mutual trust and dependence that is associated with a partnership.

2. Two reasons for admitting a new partner are listed below-

a. To increase the existing capital- The new partner contributes capital to the business. Capital inflow takes place when a new partner is admitted to the business which leads to an increase in the total capital.

b. To diversify the management - Additional managerial skills are acquired when a new partner is admitted that leads to better management of the business.