When a New Partner Is Admitted by Making an Investment

question 203

True/False

When a new partner is admitted by making an investment of assets in the partnership and the new partner has to pay a premium for admission, a bonus is divided among the old partners' capital accounts.

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Definitions:

Rebates

Partial refunds to someone who has paid too much money for tax, rent, or a utility.

Semantic Slanting

Semantic slanting involves deliberately choosing words to make a subject appear more positive or negative, influencing perception and attitudes.

Emotional Responses

The experiential, physiological, and behavioral reactions that occur in response to stimuli perceived as emotionally significant.

Deliberate Choice

The act of making a decision consciously and intentionally.