Partners Active in a Partnership Business Should Have Their Share

question 25

Multiple Choice

Partners active in a partnership business should have their share of partnership profits based on the following

• A)a combination of salaries plus interest based on average capital balances.
• B)a combination of salaries and percentage of net income after salaries and any other allocation basis.
• C)salaries only.
• D)percentage of net income after salaries is paid to inactive partners.

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Definitions:

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Immunological Theory

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