Which of the Following Is True of a Partner's Right

question 24

Multiple Choice

Which of the following is true of a partner's right to compensation?

• A) A partner is always entitled to salary or wages.
• B) The partners may agree that one or more of them is to be paid a salary, which will not be deducted at the end of the year from his or her profits.
• C) Compensation is never presumed to be the partner's share of the profits.
• D) The partners may agree that one or more of them is to be paid a salary in addition to sharing in profits.

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Definitions:

International Gold Standard

A monetary system where the value of a country's currency or paper money was directly linked to gold.

Dollar Value

This refers to the worth or purchasing power of the U.S. dollar, often used in comparison to other currencies.

Assets

Resources owned or controlled by a person or entity that are expected to produce value or economic benefit in the future.

Balance Of Payments

A statement that summarizes a country’s transactions with the rest of the world, including trade, financial transfers, and investments.