If the Partnership Agreement Does Not State How Profits and Losses

question 121

Multiple Choice

If the partnership agreement does not state how profits and losses will be divided,then by law,partners must share profits and losses:

• A) equally
• B) in the ratio of their capital balances
• C) based on a ratio of time devoted to the business
• D) in the same proportion as their initial investments

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Definitions:

Quantity Of Performance

The measure of how much work is produced or accomplished within a given time frame.

Motivation

The driving force behind individuals' actions, desires, and needs.

Intrinsic Motivation

The drive to engage in an activity for its own sake, deriving pleasure and satisfaction from the activity itself rather than from external rewards.

Complex Tasks

Activities or problems that require a high level of cognitive processing and involve multiple, interconnected elements.