Which of the Following Could Be Used as a Basis

question 83

Multiple Choice

Which of the following could be used as a basis to allocate profits among partners who are active in the management of the partnership?
1) allocation of salaries.
2) the number of years with the partnership.
3) the amount of time each partner works.
4) the average capital invested.

• A) 1 and 2.
• B) 1 and 3.
• C) 1, 2, and 4.
• D) 1, 3, and 4.
• E) 1, 2, 3, and 4.

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Definitions:

Interest Rates

The segment of a loan assessed as interest for the borrower, traditionally displayed as a yearly percentage of the loan's outstanding amount.

Tight Money Policy

A monetary policy that makes borrowing money more expensive and less accessible in order to reduce inflation.

Interest Rates

The proportion of interest a borrower is charged for loaned funds.

Bank Credit

The total amount of borrowing capacity available to an individual or entity from a bank or other financial institutions, enabling the borrower to make purchases or investments.