Final answer:
When a new partner is admitted, the partnership may continue operations based on a new contract among the partners.
Step-by-step explanation:
In a partnership, when a new partner is admitted, the partnership may continue operations based on a new contract among the partners.
For example, if a new partner joins an existing partnership, the partners may decide to update the partnership agreement to reflect the new partner's rights, responsibilities, and profit-sharing arrangement.
Therefore, the statement is true.