Which of the Following Is True of Profits and Losses

question 68

Multiple Choice

Which of the following is true of profits and losses in a general partnership?

• A) The proportion of profit shared is equal to the general partner's initial investment.
• B) Losses are shared equally by all general partners.
• C) The general partner who proposed the idea of the business gets most profit.
• D) The proportion of investment governs only the proportion of loss shared and not profit obtained.