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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Definitions:

Dichotic Listening

A psychological test in which different audio streams are presented simultaneously to each ear of a participant, used to study selective attention and the lateralization of brain function.

Shadow

An area of darkness created when an object blocks light from reaching a surface behind it.

To-Be-Attended-To

Refers to information or stimuli that require focus and cognitive processing in a given scenario.

Priming Effects

The influence that a prior stimulus exerts on subsequent cognitive processes, enhancing or inhibiting the response to a subsequent stimulus.