Final answer:
An investment adviser organized as a partnership does not need to notify its clients if the composition of the partnership changes.
Step-by-step explanation:
An investment adviser organized as a partnership does not need to notify its clients if the composition of the partnership changes. This statement is true.
Partnerships are legal structures where two or more individuals come together to jointly run a business. The partnership agreement outlines the rights and responsibilities of each partner. However, unlike corporations, partnerships do not typically have a legal requirement to inform clients about changes in the partnership composition.
Although partnerships might not be legally required to notify clients about changes, it is considered good business practice to inform clients about any significant changes that may affect their investments. Building trust and maintaining transparency with clients is important in the investment advisory industry.