Which of the following situations is a common reason for the admission of a new partner?

Increase in the existing partners' salaries

Need for additional capital and managerial expertise

Division of accumulated profits

Amalgamation of two partnership firms

In the context of admission of a new partner, what is the new profit sharing ratio?

The ratio at which old partners share future profits

The ratio at which the new partner contributes capital

The ratio at which existing partners sacrifice profits

The ratio of assets to liabilities in the firm

According to Sec. 31, Indian Partnership Act, 1932, how can a new partner be admitted into a firm?

Only with the consent of the existing partners

Without the consent of the existing partners

With the consent of the majority of existing partners

By submitting an application to the government

What rights does a newly admitted partner acquire in the partnership firm?

Right to manage the daily operations

Right to decide on profit distribution

Right to share in the assets and profits

Right to override decisions of existing partners

What is the purpose of the additional amount contributed by a new partner known as premium or goodwill?

To cover existing liabilities of the firm

To compensate existing partners for loss of profits

To finance daily operational expenses

To pay off debts incurred before the admission

What does the term 'sacrificing ratio' refer to in the context of the admission of a new partner?

Ratio of assets contributed by existing partners

Ratio of profits sacrificed by existing partners

Ratio of liabilities assumed by the new partner

Ratio of goodwill brought in by the new partner

According to Section 31, Indian Partnership Act, 1932, when is a new partner not liable for debts incurred by the firm before admission?

If the new partner provides additional capital

If the reconstituted firm assumes the liabilities

If the creditors refuse the reconstituted firm as their debtor

If the new partner had no knowledge of the existing debts

What is the purpose of revaluation of assets and liabilities during the admission of a new partner?

To adjust the profit-sharing ratio

To determine the new partner's capital contribution

To calculate the premium brought in by the new partner

To assess the overall financial health of the firm

What is the significance of unanimous consent in the admission of a new partner?

It ensures legal compliance with Section 31

It prevents the admission of incompetent individuals

It establishes the goodwill of the partnership firm

It protects the interests of existing partners

What does the term 'amalgamation' refer to in the context of the reconstitution of a partnership firm?

Merger of two partnership firms

Retirement of an existing partner

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