From which of the following sources can partnerships increase their capital?
Answer Details
Partnerships can increase their capital through admission of a new partner. When a new partner is admitted to a partnership, they typically invest capital in the business and become a part owner. This new capital infusion increases the total amount of capital that the partnership has to work with, allowing for potential growth and expansion. Sale of shares is a method typically used by companies, not partnerships, to raise capital. Discharge of a mortgage is a process of releasing a property from the mortgage obligation and is not related to capital raising. The initial capital refers to the original amount of money invested in the partnership at the time of its establishment, and not a method to increase capital.