Question

Answer in one sentence only.
Why a new partner is admitted?

Answer 1

The following are a few reasons for which a new partner is admitted to a partnership firm:
1. For additional capital amount
2. For endowment of knowledge and skills possessed by him/her
3. To enhance a firm’s future growth prospects and progress
4. To compete with the other firms
4. To replace the outgoing partner at the time of retirement and death of a partner.