State whether the following statements is true or false :Retiring part

1.	State whether the following statements is true or false :Retiring partner is entitled to his share of goodwill.OptionsTrueFalse
Answer» True Explanation: The remaining/continuing partners need to compensate the outgoing (retiring/deceased) partner. This is because after the retirement/death of a partner, the fruits of the collective past performances and reputation will be shared only by the continuing partners. Hence, the remaining partners compensate the retiring or the deceased partner by entitling him/her to a share of the firm's goodwill.

State whether the following statements is true or false :Retiring partner is entitled to his share of goodwill.OptionsTrueFalse

Answer»

True

Explanation: The remaining/continuing partners need to compensate the outgoing (retiring/deceased) partner. This is because after the retirement/death of a partner, the fruits of the collective past performances and reputation will be shared only by the continuing partners. Hence, the remaining partners compensate the retiring or the deceased partner by entitling him/her to a share of the firm's goodwill.

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State whether the following statements is true or false :Retiring partner is entitled to his share of goodwill.OptionsTrueFalse

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