Concept:The amount an incoming partner pays to old partners for their past effort in building the business reputation is the premium on admission.
Explanation:The reputation and earning power built up by the existing partners is the goodwill of the firm.
When a new partner joins, the old partners sacrifice part of their share of that goodwill.
Therefore, the new partner pays an extra amount to compensate them.
This payment is called a premium, or premium on admission.
Goodwill is the reputation itself, while the cash compensation for it is the premium.
Answer:C. Premium