Which Method of Allocation of Profits and Losses Is Based

question 74

Multiple Choice

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

• A) Salary allowance
• B) Salary expense
• C) Profit and loss ratio
• D) Interest allowance

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Definitions:

Natural Selection

A fundamental mechanism of evolution where organisms better adapted to their environment tend to survive and produce more offspring.

Variability

The degree to which different data points in a set differ from each other and from their average value.

Competition

A situation in which individuals or groups strive against one another to achieve a goal that is limited and cannot be shared.

Melting-pot View

The perspective that different cultures, peoples, or societies blend together into a single, homogeneous culture, losing their individual identities.