If the Partnership Agreement Specifies a Method for Sharing Profits

question 188

Multiple Choice

If the partnership agreement specifies a method for sharing profits but not losses,then loses are:

• A) shared equally
• B) in the ratio of their capital balances
• C) in the same method for sharing profits as specified in the partnership agreement
• D) in the ration of their initial investments

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Definitions:

Delegated Authority

The transfer of authority from one individual to another, enabling the latter to make decisions within certain boundaries.

Boundary-Spanning Job

A boundary-spanning job involves roles that require an individual to maintain relationships, communication, and coordination between their organization and its external environment or different internal groups.

Public Relations Director

A professional responsible for managing and guiding the public relations strategy of an organization, ensuring effective communication with stakeholders and the public.

Vertical Hierarchy

An organizational structure where authority and responsibility are clearly defined, creating a top-down flow of information and orders.