When a New Partner Is Admitted

question 13

Multiple Choice

When a new partner is admitted,

• A) the old partnership continues to exist and the name of the new partner is added.
• B) the old partnership is dissolved and a new one is created.
• C) the old partnership is dissolved and a new form of ownership must be chosen.
• D) the old partnership continues to exist and the new partner invests in the existing business.

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Definitions:

Yerkes-Dodson Law

A psychological principle stating that performance increases with physiological or mental arousal, but only up to a point, after which performance begins to decrease.

Moderate Arousal

A state of being that is neither too low nor too high in terms of physiological and psychological activation, often considered optimal for effective performance on tasks.

Arousal Level

The state of being physiologically alert, awake, and attentive; arousal levels can impact cognitive processes and performance on tasks.

Simple Task

A task that requires a limited amount of cognitive processing or physical effort, making it easy to complete without extensive skill or knowledge.