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This a MCQ (Multiple Choice Question) based practice test of Chapter 3 - Admission of a Partner of Accountancy of Class XII (12) for the quick revision/preparation of School Board examinations
Q Why a new partner is admitted in the firm?
- a)To Increase the Number of partners
- b)To Increase the Capital of the firm.
- c)To Increase the Profit sharing Ratio
- d)To increase the goodwill of the firm
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
This a MCQ (Multiple Choice Question) based practice test of Chapter 3...
The main purpose of admission of a new partner is to increase the capital of the firm. When old partners feel that the capital they have employed in the business is not enough for the future growth of the business. They may admit a new partner to maintain or to build up the financial strength of the business.
Most Upvoted Answer
This a MCQ (Multiple Choice Question) based practice test of Chapter 3...
yes b is correct bcoz partnership exists only due to this fact that one can not have both financial n managerial resources
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This a MCQ (Multiple Choice Question) based practice test of Chapter 3...
Explanation:
Reason for admitting a new partner in the firm:
- To Increase the Capital of the firm: One of the main reasons for admitting a new partner in the firm is to increase the capital of the business. By bringing in a new partner, the firm can access additional funds which can be used for business expansion, investment in new projects, or to meet the growing financial requirements of the business.
- Enhancing the financial strength: By admitting a new partner, the firm can enhance its financial strength and capacity to take on larger projects or enter into new markets. The infusion of additional capital can help the firm to improve its liquidity position and meet its financial obligations more effectively.
- Sharing of risks and responsibilities: With the admission of a new partner, the risks and responsibilities of the business are shared among the partners. This can help in reducing the burden on existing partners and provide a fresh perspective to the firm's operations.
- Utilizing the expertise and skills: A new partner may bring in specialized skills, knowledge, or experience that can benefit the firm. This can lead to improved decision-making, better management of resources, and overall growth of the business.
- Increasing the goodwill of the firm: The admission of a new partner can also help in enhancing the goodwill of the firm. The presence of a new partner with a good reputation or strong network can improve the firm's credibility in the market and attract more customers and business opportunities.
Reason for admitting a new partner in the firm:
- To Increase the Capital of the firm: One of the main reasons for admitting a new partner in the firm is to increase the capital of the business. By bringing in a new partner, the firm can access additional funds which can be used for business expansion, investment in new projects, or to meet the growing financial requirements of the business.
- Enhancing the financial strength: By admitting a new partner, the firm can enhance its financial strength and capacity to take on larger projects or enter into new markets. The infusion of additional capital can help the firm to improve its liquidity position and meet its financial obligations more effectively.
- Sharing of risks and responsibilities: With the admission of a new partner, the risks and responsibilities of the business are shared among the partners. This can help in reducing the burden on existing partners and provide a fresh perspective to the firm's operations.
- Utilizing the expertise and skills: A new partner may bring in specialized skills, knowledge, or experience that can benefit the firm. This can lead to improved decision-making, better management of resources, and overall growth of the business.
- Increasing the goodwill of the firm: The admission of a new partner can also help in enhancing the goodwill of the firm. The presence of a new partner with a good reputation or strong network can improve the firm's credibility in the market and attract more customers and business opportunities.
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This a MCQ (Multiple Choice Question) based practice test of Chapter 3- Admission of a Partner of Accountancy of Class XII (12) for the quick revision/preparation of School Board examinationsQ Why a new partner is admitted in the firm?a)To Increase the Number of partnersb)To Increase the Capital of the firm.c)To Increase the Profit sharing Ratiod)To increase the goodwill of the firmCorrect answer is option 'B'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about This a MCQ (Multiple Choice Question) based practice test of Chapter 3- Admission of a Partner of Accountancy of Class XII (12) for the quick revision/preparation of School Board examinationsQ Why a new partner is admitted in the firm?a)To Increase the Number of partnersb)To Increase the Capital of the firm.c)To Increase the Profit sharing Ratiod)To increase the goodwill of the firmCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for This a MCQ (Multiple Choice Question) based practice test of Chapter 3- Admission of a Partner of Accountancy of Class XII (12) for the quick revision/preparation of School Board examinationsQ Why a new partner is admitted in the firm?a)To Increase the Number of partnersb)To Increase the Capital of the firm.c)To Increase the Profit sharing Ratiod)To increase the goodwill of the firmCorrect answer is option 'B'. Can you explain this answer?.
This a MCQ (Multiple Choice Question) based practice test of Chapter 3- Admission of a Partner of Accountancy of Class XII (12) for the quick revision/preparation of School Board examinationsQ Why a new partner is admitted in the firm?a)To Increase the Number of partnersb)To Increase the Capital of the firm.c)To Increase the Profit sharing Ratiod)To increase the goodwill of the firmCorrect answer is option 'B'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about This a MCQ (Multiple Choice Question) based practice test of Chapter 3- Admission of a Partner of Accountancy of Class XII (12) for the quick revision/preparation of School Board examinationsQ Why a new partner is admitted in the firm?a)To Increase the Number of partnersb)To Increase the Capital of the firm.c)To Increase the Profit sharing Ratiod)To increase the goodwill of the firmCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for This a MCQ (Multiple Choice Question) based practice test of Chapter 3- Admission of a Partner of Accountancy of Class XII (12) for the quick revision/preparation of School Board examinationsQ Why a new partner is admitted in the firm?a)To Increase the Number of partnersb)To Increase the Capital of the firm.c)To Increase the Profit sharing Ratiod)To increase the goodwill of the firmCorrect answer is option 'B'. Can you explain this answer?.
Solutions for This a MCQ (Multiple Choice Question) based practice test of Chapter 3- Admission of a Partner of Accountancy of Class XII (12) for the quick revision/preparation of School Board examinationsQ Why a new partner is admitted in the firm?a)To Increase the Number of partnersb)To Increase the Capital of the firm.c)To Increase the Profit sharing Ratiod)To increase the goodwill of the firmCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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