For procuring additional capital
For acquiring additional managerial skill
For progress of the firm
For increasing competition
Answer is Right!
Answer is Wrong!
The correct answer is D. For increasing competition.
The purpose of admitting a partner is to bring in additional capital, managerial skill, and expertise to the firm. This can help the firm to grow and succeed. Increasing competition is not a purpose of admitting a partner. In fact, it can be the opposite. When a new partner is admitted, they may have different ideas and goals for the firm. This can lead to conflict and competition between the partners.
Here is a brief explanation of each option:
- A. For procuring additional capital: This is a common reason for admitting a partner. When a firm needs more money to grow, they can admit a partner who is willing to invest in the business.
- B. For acquiring additional managerial skill: Another common reason for admitting a partner is to acquire additional managerial skill. A partner with experience in a particular area can help the firm to improve its operations.
- C. For progress of the firm: Admitting a partner can help the firm to progress in a number of ways. The partner can bring in new ideas, contacts, and resources. They can also help to improve the firm’s management and operations.
- D. For increasing competition: This is not a purpose of admitting a partner. In fact, it can be the opposite. When a new partner is admitted, they may have different ideas and goals for the firm. This can lead to conflict and competition between the partners.