If an Existing Partner Withdraws from a Partnership

question 48

Multiple Choice

If an existing partner withdraws from a partnership,

• A)his or her interest may be sold to the partnership or an individual partner.
• B)the consideration received for that partner's interest may suggest the existence of undervalued existing assets and/or goodwill.
• C)either the bonus or the goodwill method may be used to record the transaction if the partnership acquires the withdrawing partner's interest.
• D)all of the above.

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Definitions:

Behavioral Level

The manifestation of actions and reactions observed in individuals or groups, often studied in psychology to understand and predict human behavior better.

Emotional Level

Describes the intensity or degree of emotions a person experiences or expresses.

Physiological Level

Referring to the normal functioning of an organism or any of its parts, usually associated with biochemical and physical processes.

Tend-and-befriend Response

A stress response model proposing that people, particularly women, seek social alliances and support rather than fight or flight.