Which of the Following Statements Is True of Profits and Losses

question 87

Multiple Choice

Which of the following statements 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 in the same proportion as profits 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.

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Definitions:

Mean

The arithmetic average of a set of numbers, calculated by adding all the values together and dividing by the number of values.

Distribution

The way in which values of a variable or frequencies of outcomes are spread out or dispersed over a range of values.

Scores

A numerical representation of a performance, ability, or achievement.

Standard Deviations

Measures of the amount of variation or dispersion of a set of values, indicating how much the values deviate from the mean.