The Factor That Would Not Normally Be Taken into Account

question 51

Multiple Choice

The factor that would not normally be taken into account in determining the profit- and loss-sharing arrangements between partners in a partnership is:

• A) the capital contributed by each partner.
• B) the age of the partners.
• C) the hours of work of each partner in the business.
• D) None of the above, i.e. all are factors that would be taken into account.

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Definitions:

Long Term

Pertaining to an extended period of time, typically involving planning or investment that spans several years.

Meaningful

Significance or value that is profound, having a deep impact or relevance.

Vision

A forward-looking statement or concept that outlines what an organization or individual wants to achieve or become in the future.

Mission Statement

A short statement that defines an organization's purpose, goals, and approach to its operations, guiding its internal decision-making processes.