Which of the Following Is True of the Distribution of Profits

question 93

Multiple Choice

Which of the following is true of the distribution of profits earned by a partnership?

• A)They are distributed equally irrespective of the capital provided by each partner.
• B)They are distributed based on the work each partner puts into the business.
• C)They are distributed based on the credit rating of each partner.
• D)They are distributed in the proportions specified in the articles of partnership.
• E)They are distributed as per the guidelines in articles of incorporation.

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Definitions:

Image Restoration Theory

A theory that outlines strategies and tactics individuals or organizations can use to repair their public image following a crisis or scandal.

Inoculation Theory

Explains that inoculation (giving audiences a small dose of an opposing argument and then refuting it) builds their resistance to future opposing messages.

Influence Theory

A conceptual framework focused on understanding how individuals can be affected or persuaded by various factors or sources of influence in decision-making or attitude formation.

Diffusion of Innovations Theory

A social science theory that explains how, why, and at what rate new ideas and technology spread through cultures.