Which Statement Concerning Drawings by Partners in a Partnership Is

question 20

Multiple Choice

Which statement concerning drawings by partners in a partnership is correct?

• A) Drawings are generally regarded as withdrawals of future profits.
• B) Drawings are taken into account when calculating the final distribution of profit between the partners.
• C) Interest is charged on drawings if the partnership agreement is silent on the matter.
• D) Charging interest on drawings acts as an incentive to partners to withdraw money from the partnership.

---

Definitions:

Limbic System

A complex system of nerves and networks in the brain, involved with instinct and mood. It controls the basic emotions (fear, pleasure, anger) and drives (hunger, sex, dominance, care of offspring).

Frontal Lobes

The part of the brain located at the front of each cerebral hemisphere, responsible for higher cognitive functions, such as reasoning, planning, parts of speech, movement, emotions, and problem solving.

Intimacy

The sense of closeness and attachment resulting from a deep understanding and mutual affection between individuals, often developed through sharing personal thoughts, feelings, and experiences.

Emotionally Close Relationships

Bonds between individuals characterized by deep affection, trust, mutual support, and strong emotional connections.