Current partners usually require any new partner to pay a bonus for the privilege of joining when the current value of a partnership is greater than the recorded amounts of equity.

Question

Quizplus · Accepted Answer

This is correct. When the current value of a partnership is higher than the recorded amounts of equity, current partners may require new partners to pay a bonus for the privilege of joining. This is because the current partners' equity is worth more than what is recorded on the partnership's books.

Current Partners Usually Require Any New Partner to Pay a Bonus