When an Existing Partner Sells His Interest to Another Party

question 5

Multiple Choice

When an existing partner sells his interest to another party in a personal transaction ________.

• A) it is considered a transaction between the partnership and the new party
• B) the old partnership will continue functioning, since the partner is replaced by another party without diluting the old partnership
• C) the journal entry simply debits the withdrawing partner's capital account and credits the new partner's capital
• D) the equity and assets in the balance sheet always increase by the same amount

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Definitions:

Negative Performance Norms

Established patterns of behavior within a group that accept or encourage poor performance or dysfunctional activities.

Team Cohesiveness

Describes the extent to which team members are connected with each other and are motivated to achieve the group’s objectives collectively, enhancing performance and satisfaction.

Positive Performance Norms

Established standards or expectations within a group that encourage productive and beneficial behaviors among its members.

Team Productivity

The efficiency and effectiveness with which a team is able to accomplish its goals and produce desired outcomes.