Final answer:
When a new partner gets a bonus from older partners in a partnership, it usually means they're being incentivized to join due to the added value they bring to the business. This bonus can alter the financial balance within the partnership, which has a fluid structure and is subject to joint liability among partners.
Step-by-step explanation:
When a new partner enters into a partnership and receives a bonus from the older partners, it means that the existing partners are providing an incentive (often monetary) to the new partner to join the business. This could be because the new partner brings valuable resources, such as capital, skills, or business connections, which are expected to enhance the partnership's profitability or capabilities.
The new partner often pays an amount for their share in the partnership, which typically represents the value of the business. If the new partner's investment is less than the proportionate share of the existing business's book value, the difference is considered a bonus to the existing partners. Conversely, if the new partner pays more, the premium over the book value is a bonus to the new partner from the existing ones.
It is important to note that partnerships have their disadvantages. One main disadvantage is the joint liability of partners for the actions and debts of one another; another is the fluid nature of the partnership structure, which can alter significantly when partners leave or new ones join.