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If the deed states that a retiring partner will be paid in instalments, what is the main benefit?

Answer and explanation

Correct answer: Immediate cash pressure on the firm is reduced

Payment in instalments helps the firm manage cash. The interest condition in the deed should also be checked.

Related tags

RetirementInstalment PaymentCash FlowPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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