Final answer:
Whether the total assets of a partnership remain unchanged when a partner leaves depends on how the departing partner's share is settled. If it's settled with external funding, the assets remain the same. However, it varies with the nature of the transaction.
Step-by-step explanation:
When a partner leaves a partnership, it is indeed possible that the total assets will be unaffected. In some cases, the departing partner's interest may be purchased by the existing partners or an incoming partner with funds external to the partnership's assets. Thus, the partnership's total assets remain the same, even though ownership of those assets has changed hands.
One of the main disadvantages of a partnership is the shared personal liability for the business's debts. In addition, the partnership structure is not perpetual; when a partner exits for any reason, the original partnership agreement is no longer valid, and necessary changes to the structure could potentially result in the creation of a new partnership entity.
Nevertheless, specifically regarding assets, the continuity of the asset base depends on the method employed to settle the departing partner's share. If the methodology relies on existing assets, there is an impact; however, if external funds are used, there may be no change to the asset structure of the partnership.