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Which Method of Allocation of Profits and Losses Is Based

question 74

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Which method of allocation of profits and losses is based on a percent of initial investment of the partners?


Definitions:

Offeror

The person or entity who makes a proposal or offer, especially in a contractual context.

Objective Standards

Criteria or benchmarks that are not influenced by personal feelings, interpretations, or prejudice; based on facts.

Subjective Standards

Criteria or guidelines that are based on personal opinions, feelings, or tastes, rather than objective, measurable indicators.

Contracts

Legal agreements between two or more parties that are enforceable by law.

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