Asked by Johnny Reyes on Jun 11, 2024
Verified
If a new partner is given a 20% interest in the firm, the new partner will receive a 20% interest in earnings.
Interest in Earnings
A stake or claim on a portion of a company's profits, potentially through investments or ownership of equity in the company.
Interest in Firm
The ownership stake or share in the financial success and decision-making of a business.
- Acquire insight into the approach and effects of welcoming new members into a partnership, which includes the contribution of assets and the disbursement of premiums.
Verified Answer
AA
Ashour AlbaziJun 13, 2024
Final Answer :
False
Explanation :
The new partner's interest in earnings is determined by the partnership agreement and may not necessarily match their ownership interest percentage.
Learning Objectives
- Acquire insight into the approach and effects of welcoming new members into a partnership, which includes the contribution of assets and the disbursement of premiums.
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