1.
An intangible asset related to the reputation of a business is known as
.
2.
A new partner can be admitted into a partnership with the
of all partners.
3.
The goodwill of a business can be sold only by
the business.
4.
Technically, the admission of a new partner
the old partnership
5.
An incoming partner contributes
to share in the total assets and
for future profits.
6.
Excess of the proportionate investment is the cost of
for the old partners.
7.
Market value of the business - Net worth of the business =
.
8.
Under the goodwill method, goodwill is shown on the
.
9.
Goodwill is distributed among old partners according to the
income sharing ratio.
10.
A new partnership deed is
when an amalgamation of firms takes place.
Admission of New Partner: Fill In the Blanks FAQs
A Partnership is an association of two or more persons who carry on a business for profit. Each partner has unlimited liability for the debts of the Partnership. Partnership accounting is based on the principle of mutual agency, which holds that each partner is an agent of the Partnership and is responsible for all actions taken in connection with the Partnership business.
The four types of Partnerships are general, limited, joint venture, and unique.
The main purpose of a Partnership agreement is to establish the rights and responsibilities of the partners. The contract can be as simple or complex as the partners want, but it must include at least the following: The name of the Partnership, the business purpose of the Partnership and the location of the principal place of business. The partners' contributions to the Partnership, the division of profits and losses, and how the Partnership will be dissolved. The agreement may also contain other provisions, such as restrictions on the transfer of Partnership interests or the admission of new partners.
Partnership firms admit new partners to increase capital resources, secure advantages of a new entrant's skill, and to benefit from that person's business connections.
There are two main rights of partners. The first is the right to share in the assets of the firm if it is dissolved. The second is the right to share in future profits of the firm.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.
