Which of the Following Statements Is Correct Regarding the Admission

question 53

Multiple Choice

Which of the following statements is correct regarding the admission of a new partner?

• A) A new partner must purchase a partnership interest directly from the business.
• B) The right of co-ownership in the business property can be transferred to a new partner without the consent of other existing partners.
• C) The right to participate in management of the business can be conveyed without the consent of other existing partners.
• D) The right to share in profits and losses can be sold to a new partner without the consent of other existing partners.
• E) A new partner always pays book value.

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Definitions:

Misapplication

The improper or dishonest use of funds, resources, or assets for purposes other than those intended.

Trust Funds

A financial arrangement where assets are held and managed by one party for the benefit of another.

Personal Assets

Assets owned by an individual, including but not limited to, real estate, bank accounts, investments, and personal property.

Capital Contributions

Investments or funding provided by owners or shareholders to a business, typically in the form of cash or assets, in exchange for an ownership stake.