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When a new partner is admitted he acquires his share of profits , this will ____ the old partner’s shares in profits:
  • a)
    Reduce
  • b)
    Increase
  • c)
    Remain same
  • d)
    No change
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
When a new partner is admitted he acquires his share of profits , this...
Old partners will sacrifice some share in favor of a new partner. In simple words, when a new partner is admitted he acquires his share of profits , this will reduce the old partner’s shares in profits
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Most Upvoted Answer
When a new partner is admitted he acquires his share of profits , this...
Reduce the share of profits for the old partner.
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