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:

Ultimate Software

A technology company known for developing cloud-based human capital management (HCM) software solutions.

Human Resources

An organizational department responsible for managing employee-related functions, such as hiring, training, and benefits.

Recession

A significant decline in economic activity across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Indirect Compensation

Benefits provided to employees that are not included in direct salary or wages, such as health insurance, retirement plans, and paid time off.