Which of the following is true about a partnership?
A)The old partnership ends only upon the withdrawal of a partner.
B)The old partnership ends upon the acceptance of a new partner.
C)If a new partner is admitted to the partnership,the old partnership must liquidate.
D)Partnerships have an unlimited life.
E)Only one owner is allowed in a Partnership.

Question

Quizplus · Accepted Answer

A partnership can continue even after the withdrawal of a partner. However, the admission of a new partner changes the partnership agreement and requires the old partnership to be dissolved and a new one to be formed. Therefore, the old partnership ends upon the acceptance of a new partner.

Which of the Following Is True About a Partnership