Which of the Following Is TRUE of Ownership Changes in a Partnership

question 40

Multiple Choice

Which of the following is TRUE of ownership changes in a partnership?

• A) Admitting a new partner does not change the core structure of the old partnership.
• B) The purchase of an existing partner's interest is a transaction between the new partner and the partnership firm.
• C) Any time the partner mix changes, the old partnership ceases to exist and a new partnership begins.
• D) A person can become a partner by purchasing an existing partner's interest, even without the approval of the other partners.

---

Definitions:

Marginal Utility

The change in satisfaction or utility an individual gains from consuming one additional unit of a good or service.

Consumer Equilibrium

In marginal utility theory, the combination of goods purchased that maximizes total utility by applying the utility-maximizing rule.

Prices

The amount of money required to purchase a good or service, often determined by the forces of supply and demand in the market.