The goodwill brought in by a new partner is shared by the old partner.

Question

State True or False with reasons.

The goodwill brought in by a new partner is shared by the old partner.

Answer 1

This statement is True.

The reputation of business measured in terms of money is known as goodwill and on this, old partners have right so when goodwill is brought in by a new partner in the business, it is shared by the old partner.