White,Gray,and Greene Enter into a Contract to Form a Partnership,but

question 31

Multiple Choice

White,Gray,and Greene enter into a contract to form a partnership,but the contract says nothing about the sharing of profits and losses.Which of the following will take place?

• A) Profits and losses will be shared in a ratio based on the dollar amount of their capital investments.
• B) Profits will be shared equally;losses will be absorbed based on dollar amount of capital investment.
• C) Profits will be based on amount of time each partner spends working for the firm;losses will be shared equally.
• D) Profits and losses will be shared equally.

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Definitions:

Deceptive Advertising

Marketing practices that mislead or deceive consumers significantly enough to affect purchasing decisions.

Article III

Pertains to the section of the U.S. Constitution that establishes the Judicial Branch of the government, outlining the powers and structure of the federal courts.

Federal Courts

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Social Regulations

Rules imposed by government to regulate the impact of business activities on public health, safety, the environment, and social welfare.