Multiple choice

A, B and C are partners in a firm. If Z wants to join the firm as a new partner, which of the following has to be done?

  1. Old partnership has to be dissolved.

  2. Old firm has to be dissolved.

  3. Both firm and partnership have to be dissolved.

  4. Their is no need to dissolve either firm or partnership.

  5. No new partner can join the firm once the firm is formed.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

New partner can join the firm without dissolving partnership or firm. However, it is called reconstitution of firm.

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