Home › CBSE Class 12 (Commerce) › Accountancy › Accounting for Partnership Firms: Change in Profit-Sharing Ratio and Admission of a Partner › Why might a partnership firm admit a new partner?
Why might a partnership firm admit a new partner?
ATo cut the tax on its profits
BTo get extra capital or managerial help
CTo reduce the number of customers
DTo avoid preparing accounts
Answer & Solution
Correct answer: B. To get extra capital or managerial help
A firm that wants to expand brings in a partner to supplement its capital or management skills.
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