If a New Person Purchases the Partnership Interest of an Existing

question 49

True/False

If a new person purchases the partnership interest of an existing partner, the new person assumes the same capital balance as the old partner, regardless of whether the amount paid is more or less than the existing partner's capital account balance.

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Definitions:

Agency

A relationship between two parties in which one party (the agent) agrees to represent or act for the other (the principal).

Improbable

Unlikely to occur or be true.

Estopped

Estopped refers to a legal principle that prevents a person from arguing something contrary to a claim they previously made or agreed to by their actions or words.

Requisite Authority

The necessary or required power, permission, or jurisdiction to perform an action or enforce a policy.