A New Partner May Be Admitted to a Partnership by

question 79

Multiple Choice

A new partner may be admitted to a partnership by

• A) inheriting a partnership interest
• B) contributing assets to the partnership
• C) purchasing a specific quantity of assets from the partnership
• D) a written approval under the federal law

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Definitions:

Due Diligence

A comprehensive appraisal of a business or individual’s financial performance, legal obligations, and other details conducted before entering into an agreement or transaction.

Short-termism

The focus on immediate results or benefits at the expense of long-term interests or sustainability.

Quarterly Earnings

The financial performance reports of a company issued every three months, often including net income, earnings per share, and net sales.

Due Diligence

A comprehensive appraisal of a business or individual’s performance, financial records, or legal obligations, conducted typically before entering into an agreement.