Which of the Following Statements Is True of Partnerships

question 41

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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