Final answer:
The statement that total contributed capital is the sum of the capital balances of old and new partners is true. It reflects the broader economic principle that the supply and demand of financial capital must always be balanced.
Step-by-step explanation:
The statement that total contributed capital is the sum of the capital balances of the old partners and the new partner's investment is true. Fundamentally, when assessing the financial components of a business, particularly when discussing partnerships, any new investments made by incoming partners are added to the existing capital contributed by the current partners to derive the total contributed capital.
It's important to understand that in a partnership, the supply and demand of financial capital must balance. In general economic terms, the overall financial capital supplied (including private savings and inflow of foreign savings) must be equal to the total financial capital demanded (comprising of private investment and government budget deficits). This relationship is encapsulated in the formula: S + (M-X) = I + (G-T), where S is private saving, M is imports, X is exports, I is investment, G is government spending, and T is taxes.