Unless Otherwise Agreed in the Articles of Partnership, Which of the Following

question 72

Multiple Choice

Unless otherwise agreed in the articles of partnership, which of the following is true regarding rights partners have in regard to their interactions with other partners?

• A) Partners have the right to participate equally in management, the right to share equally in profits, the obligation to share equally in losses, and the right to additional compensation for devoting time to the business.
• B) The right to participate in management according to the level of capital contribution, the right to share in profits according to the level of capital contribution, the obligation to share in losses according to the level of capital contribution, and the right to additional compensation for devoting time to the business.
• C) The right to participate in management according to the level of capital contribution, the right to share equally in profits, the obligation to share equally in losses, and the right to additional compensation for devoting time to the business.
• D) The right to participate equally in management, the right to share in profits according to the level of capital contribution, the obligation to share in losses according to the level of capital contribution, but no right to additional compensation for devoting time to the business.
• E) The right to participate equally in management, the right to share equally in profits, the right to share equally in losses, but no right to additional compensation for devoting time to the business.

---

Definitions:

Perpetual Inventory System

An accounting method that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Sales Revenue

The total income received by a company from its sales of goods or services, before any expenses are subtracted.

FIFO

An inventory valuation method where goods first purchased or produced are the first to be sold, standing for First-In, First-Out.

Perpetual Inventory System

A perpetual inventory system is a method of accounting for inventory that records sales and purchases of goods in real-time through an inventory management system, offering accurate and up-to-date stock levels.