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From which of the following sources can partnership increase their capital?


Question

From which of the following sources can partnership increase their capital?

Options

A)
Sales of shares
B)
Admission of new partners
C)
Discharge of mortgage
D)
Grants from relatives

The correct answer is B.

Explanation:

This question is asking where a partnership can get more money to increase their capital. The options are A) sales of shares, B) admission of new partners, C) discharge of mortgage, and D) grants from relatives.

Option A, sales of shares, is not applicable to partnerships. This option is only applicable to companies.

Option B, admission of new partners, is correct. Partnership can increase their capital by bringing in new partners who will contribute money to the business. This is a common way for partnerships to grow and expand.

Option C, discharge of mortgage, is not applicable to this question. Discharge of mortgage is when a debt secured by a mortgage is paid off.

Option D, grants from relatives, is not a reliable or sustainable source of capital for a partnership. While it is possible for a partnership to receive grants from relatives, it is not a reliable or sustainable source of capital.

In conclusion, the correct answer to this question is option B, admission of new partners. This is a reliable and commonly used method for partnerships to increase their capital.


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