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: Option 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