Why a new partner is admitted?

1.	Why a new partner is admitted?
Answer» The following are a few reasons for which a new partner is admitted to a partnership firm: 1. For additional capital amount 2. For endowment of knowledge and skills possessed by him/her 3. To enhance a firm’s future growth prospects and progress 4. To compete with the other firms 5. To replace the outgoing partner at the time of retirement and death of a partner.

Answer»

The following are a few reasons for which a new partner is admitted to a partnership firm:

1. For additional capital amount

2. For endowment of knowledge and skills possessed by him/her

3. To enhance a firm’s future growth prospects and progress

4. To compete with the other firms

5. To replace the outgoing partner at the time of retirement and death of a partner.

Discussion