A bonus may result when a new partner is admitted by making an investment directly into the partnership.

Question

Quizplus · Accepted Answer

This statement is true. When a new partner is admitted and makes a direct investment into the partnership, it can lead to a bonus payment to the existing partners. This is often referred to as a "goodwill bonus" or "admission bonus" and is used to compensate the existing partners for the value that the new partner brings to the partnership.

A Bonus May Result When a New Partner Is Admitted