A Partnership Agreement Defines How the Partners Will Be Compensated

question 19

Multiple Choice

A partnership agreement defines how the partners will be compensated. Normally, ________.

• A)partners are not entitled to salaries or wages, but are compensated by a share of the profits of the business
• B)the general partner's salary is set at two times the salaries of the limited partners
• C)both general and limited partners are permitted salaries, but all silent or dormant partners are compensated only by sharing in the profits
• D)while the agreement establishes payout schedules, it does not spell out what constitutes profit

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Definitions:

Child Labor

The employment of children in an industry or business, especially when illegal or considered exploitative.

Unions

Organizations formed by workers to protect their rights and interests through collective bargaining with employers regarding wages, working conditions, and benefits.

Overtime Pay

Additional compensation required by law to be paid to employees who work beyond the standard working hours set by legal, regulatory, or contractual agreements.

Workers' Compensation Laws

Legislation designed to provide financial compensation and medical care to employees injured in the course of their employment.