From which of the following sources can partnership increase their capital?
A. Sales of shares B. Admission of new partners C. Discharge of mortgage D. Grants from relatives
Correct Answer: B
Explanation
Partnership. An association of two or more persons engaged in a business enterprise in which the profits and losses are shared proportionally. A partnership can maintain a single partnership capital account for all partners, with a supporting schedule that breaks down the capital account for each partner Admission of new partners is a major source of increasing capital in partnership