Which of the Following Is True of a Partner's Right

question 40

Multiple Choice

Which of the following is true of a partner's right to compensation?

• A) A partner is always entitled to salary or wages.
• B) The partners may not agree that one or more of them is to be paid a salary, which will not be deducted at the end of the year from his or her profits.
• C) Compensation is never presumed to be the partner's share of the profits.
• D) The partners may agree that one or more of them is to be paid a salary in addition to sharing in profits.

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Definitions:

Price Cut

A reduction in the selling price of products or services, typically to attract more buyers or to sell off excess stock.

Equilibrium Price

The price at which the supply of an item matches its demand, leading to a stable market condition where there is neither excess supply nor excess demand.

Equilibrium Output

The level of production at which the quantity of goods supplied equals the quantity of goods demanded, leading to market stability.

Diagram

A simplified drawing using lines and symbols to represent structures, systems, or processes, aiding in the explanation or analysis of data and concepts.