Which of the Following Would Be Least Likely to Be

question 45

Multiple Choice

Which of the following would be least likely to be used as a means of allocating profits among partners who are active in the management of the partnership?

• A)Salaries
• B)Bonus as a percentage of net income before the bonus
• C)Bonus as a percentage of sales in excess of a targeted amount
• D)Interest on average capital balances

---

Definitions:

Administrative Cost

Refers to expenses related to the general operation of a business, including office supplies, management salaries, and other non-production related costs.

Equilibrium Pricing

The point at which the supply of a product matches demand, setting the market price.

Deadweight Loss

A loss in economic efficiency that can occur when equilibrium for a good or a service is not achieved or is not achievable.

Imposition

The act of establishing or applying something by authority or force, often referring to taxes, duties, or policies.