Which of the Following Is Correct When Admitting a New $\quad$

question 90

Short Answer

Which of the following is correct when admitting a new partner into an existing partnership? $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\begin{array}{ccc} \underline{\text { Purchase of an Interest}}& \underline{\text { Admission by Investment}}\end{array}$
A) $\begin{array}{ccc}\text { Total net assets } & \text { unchanged } &&&&&& \text { unchanged } \\\end{array}$
B) $\begin{array}{ccc}\text {Total capital } &&& \text { increased } &&&&&& \text { unchanged } \\\end{array}$
C) $\begin{array}{ccc}\text { Total net assets } & \text { unchanged } &&&&&& \text { increased } \\\end{array}$
D) $\begin{array}{ccc}\text { Total capital } &&& \text { unchanged } &&&&& \text { unchanged }\end{array}$

• A)\(\begin{array}{ccc}
• \text { Total net assets } & \text { unchanged } &&&&&& \text { unchanged } \\\end{array}\)
• B)\(\begin{array}{ccc}\text {Total capital } &&& \text { increased } &&&&&& \text { unchanged } \\\end{array}\)
• C)\(\begin{array}{ccc}\text { Total net assets } & \text { unchanged } &&&&&& \text { increased } \\\end{array}\)
• D)\(\begin{array}{ccc}\text { Total capital } &&& \text { unchanged } &&&&& \text { unchanged }
• \end{array}\)

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Definitions:

Co-optation

A strategy by which a group assimilates or takes over elements of another, often to neutralize or gain support.

Mass Movements

Large groups of people engaging collectively in political, social, or cultural campaigns to bring about or resist change in society.

Offers of Reforms

Proposals or pledges to make changes or improvements, typically in political, social, or economic systems.

Compounded Semiannually

Interest on an investment that is calculated twice a year and added to the principal sum.