Question

Whenever a partner mix in a partnership changes, the old partnership ceases to exist and a new partnership begins. True False

Answer 1

Partnership: a business entity that involves the creation of a business by 2 or more individuals.

These business identities are often made through a partnership agreement. Within a partnership agreement the individuals often must agree upon:

• the amount of money put in by each partner
• the sharing of profits and losses by each partner
• the roles and responsibilities of each partner
• the rules around accepting new partners or withdrawing existing partners
• the procedures for ending the partnership

If a partnership changes, the agreement ceases to continue. The addition of the departure of a partner in the partnership alters the legal structure and ownership, which requires forming a new partnership agreement. Therefore, it is true whenever a partner mix in a partnership changes, the old partnership ceases to exist and a new partnership begins