If the Partnership Agreement Does Not Apportion Profits,profits Are Shared

question 42

True/False

If the partnership agreement does not apportion profits,profits are shared in the same proportion as a partner's investment of capital in the firm.

---

Definitions:

Cost of Capital

The profit rate that an organization must reach in its investment operations to keep its market status and draw financial resources.

Cash Inflows

The total amount of money being transferred into a business, typically measured over a specific period of time.

Cost of Capital

The compulsory return rate businesses need on investment plans to sustain their market position and attract monetary contributions.

NPV

Net Present Value, a calculation used to determine the present value of an investment's expected future cash flows compared to its initial cost.