A new partner may be admitted to a partnership by purchasing an existing partner's interest.

Question

Quizplus · Accepted Answer

Yes, a new partner may be admitted to a partnership by purchasing an existing partner's interest. This is known as a buy-in or buyout. The purchase price is typically based on the value of the partner's share of the business as determined by an agreed-upon formula or appraisal. The new partner must also agree to fulfill any obligations or responsibilities that were previously held by the outgoing partner.

A New Partner May Be Admitted to a Partnership by Purchasing