Which of the following is TRUE of ownership changes in a partnership?
A) Admitting a new partner does not change the core structure of the old partnership.
B) The purchase of an existing partner's interest is a transaction between the new partner and the partnership firm.
C) Any time the partner mix changes, the old partnership ceases to exist and a new partnership begins.
D) A person can become a partner by purchasing an existing partner's interest, even without the approval of the other partners.

Question

Quizplus · Accepted Answer

Any time there is a change in the composition of partners in a partnership, the original partnership is considered to have ended, and a new partnership is formed. This is because the partnership is essentially an agreement among specific individuals, and changing the individuals alters the agreement.

Which of the Following Is TRUE of Ownership Changes in a Partnership