Which of the Following Statements Is TRUE of Partnerships

question 78

Multiple Choice

Which of the following statements is TRUE of partnerships?

• A) If the partners have no partnership agreement specifying how to divide profits and losses, then they share profits and losses equally.
• B) It is legally required to share the profit and losses equally, irrespective of the partnership agreement.
• C) The stated ratio of profit sharing needs to be approved by the SEC.
• D) The profit sharing is always based on each partner's capital balances and any losses will be shared equally.

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Definitions:

Inexpensive Modes

Transportation or communication methods that are low in cost.

Transportation Performance

The assessment of how effectively and efficiently goods are moved from one location to another, often measured by speed, cost, and reliability.

Plans Change

The concept that strategic and operational plans may need to be adjusted or revised based on new information, market dynamics, or unexpected events.

Transportation Strategy

The plan and execution for moving goods from one location to another efficiently, often considering factors such as cost, speed, and environmental impact.