Asked by Jonathan Richardson on Jul 27, 2024
Verified
A partnership can be joined by:
A) investing into the business.
B) purchasing an equity interest in the business.
C) buying out one of the partners and taking over their interest (by mutual agreement) .
D) All of the above are correct.
Equity Interest
Ownership interest in a company, represented by the equity or shares held by investors.
Mutual Agreement
A consensus reached by two or more parties where the terms of an engagement or deal are accepted by all involved.
- Comprehend the influence of investments on a partner's proportional stake in a partnership.
Verified Answer
JB
Jaime BermudezAug 02, 2024
Final Answer :
D
Explanation :
All the options provided are valid ways to join a partnership. Investing in the business, purchasing an equity interest, or buying out an existing partner's interest with mutual agreement are all common methods for becoming a partner in a partnership.
Learning Objectives
- Comprehend the influence of investments on a partner's proportional stake in a partnership.
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