AN EVENT THAT WILL NOT REQUIRE A CHANGE IN THE PROFIT-SHARING RATIO OF PARTNERS IN A FIRM IS WHEN

• A. a partner dies
• B. a partner retires
• C. a new partner is admitted
• D. partners assets value appreciates ✓

The answer to the question is: D. partners assets value appreciates

An event that will not require a change in the profit-sharing ratio of partners in a firm is when a partner’s assets value appreciates. This is because the profit-sharing ratio of partners in a firm is typically based on the initial agreement or subsequent amendments made by the partners, and changes in the value of a partner’s assets do not necessarily impact this agreement. The profit-sharing ratio determines how profits and losses are distributed among the partners, and it is usually established based on various factors such as capital contribution, expertise, and responsibilities within the firm.

When a partner dies, retires, or a new partner is admitted, it generally necessitates a change in the profit-sharing ratio. In the case of a partner’s death, their share of profits and losses would need to be redistributed among the remaining partners. Similarly, when a partner retires, their share would need to be reallocated among the remaining partners. When a new partner is admitted, the profit-sharing ratio would need to be adjusted to accommodate the new partner’s share of profits and losses.

However, when a partner’s assets value appreciates, it does not automatically lead to a change in the profit-sharing ratio. The appreciation of a partner’s assets may increase their individual wealth within the firm, but it does not inherently alter the agreed-upon distribution of profits and losses among the partners.