, and are partners in a firm. If is admitted as a new partner, what would be its primary legal implication?
- AOld firm would be dissolved
- BOld firm and old partnership would be dissolved
- COld partnership would be reconstituted
- DNothing is affected.
Solution & Step-by-step Explanation
The admission of a new partner changes the internal profit sharing ties between existing partners, which legally means the dissolution of the old partnership contract and its automatic reconstitution. The underlying commercial business structure (the firm) does not close or dissolve; operations continue uninterrupted under the newly amended partnership configuration.