When a new person wishes to be admitted to an existing partnership on an equal profit-sharing basis,the amount the new person must invest to be admitted is not necessarily tied to the total capital of the partnership.

Question

Quizplus · Accepted Answer

The amount the new person must invest to be admitted may be determined by a variety of factors, such as the assets and liabilities of the partnership, the projected earnings of the partnership, and the negotiation between the existing partners and the new person. Therefore, it is not necessarily tied to the total capital of the partnership.

When a New Person Wishes to Be Admitted to an Existing