When a New Partner Is Admitted into a Partnership and the New

question 3

Multiple Choice

When a new partner is admitted into a partnership and the new partner receives a capital credit less than the tangible assets contributed,which of the following explains the difference?
I.The new partner's goodwill has been recognized.
II.The old partners received a bonus from the new partner.

• A)I only
• B)II only
• C)Either I or II
• D)Neither I nor II

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Definitions:

Fairly Applied

Implementing policies or decisions in a just, unbiased manner, ensuring equal treatment for all involved.

Individualism View

Emphasizes the importance of individual rights, autonomy, and self-interest over collective or group considerations in decision making and ethics.

Ethical Behaviour

Acting in ways consistent with society's accepted principles of right and wrong.

Long-term Advantage

A competitive edge or benefit that a company or individual maintains over an extended period.