If the Partnership Agreement Provides a Formula for the Computation

question 3

Multiple Choice

If the partnership agreement provides a formula for the computation of a bonus to the partners,the bonus would be computed

• A)next to last,because the final allocation is the distribution of the profit residual.
• B)before income tax allocations are made.
• C)after the salary and interest allocations are made.
• D)in any manner agreed to by the partners in the partnership agreement.

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Definitions:

Organisation's Resources

Various assets, including human, financial, physical, and informational, that an organization utilizes to function and achieve its objectives.

Productivity

The measure of the efficiency of a person, machine, system, etc., in converting inputs into useful outputs.

Output/Input

A measure of efficiency that compares the quantity or quality of outputs (results, products) generated by a system to the inputs (resources, time) used.

Productivity

The measure of how efficiently resources are used to produce outputs.