True or FalseInstruction: Write "T" if the statement is correct and "F" if incorrect.1. A withdrawing or retiring partner cannot sell his interest to any personwithout informing first the other partner.2. When there are only two persons comprising the partnership, the sale ofone's share to the other will make the partnership become a solepartnership.3. Insolvency of partnership is where its remaining assets are confined to thesettlement of its obligation resulting in its inability to go on with normaloperations.

A partnership is a business form that is conducted by two or more partners who are agreed to share…

Answered: A withdrawing or retiring partner…

Business

Accounting

A withdrawing or retiring partner cannot sell his interest to any person without informing first the other partner.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

True or False
Instruction: Write "T" if the statement is correct and "F" if incorrect.
1. A withdrawing or retiring partner cannot sell his interest to any person
without informing first the other partner.
2. When there are only two persons comprising the partnership, the sale of
one's share to the other will make the partnership become a sole
partnership.
3. Insolvency of partnership is where its remaining assets are confined to the
settlement of its obligation resulting in its inability to go on with normal
operations.

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