When a New Partner Invests Less Than the Proportionate Share

question 108

True/False

When a new partner invests less than the proportionate share he or she receives in the partnership,a bonus is recorded to his or her account.

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Definitions:

Uniform Commercial Code

Codification of laws intended to standardize the regulation of commercial transactions in the U.S., facilitating the fair and consistent treatment of businesses and consumers.

Common Law

The body of law developed through judicial decisions, as opposed to laws enacted by legislative bodies (statutory law) or in official codes.

Statute of Frauds Rule

A legal principle that requires certain types of contracts to be in writing to be enforceable.

Sale of Real Estate

This term refers to the process of transferring ownership of property or land from one party to another.