If division of profits in a partnership is NOT specified, profit (loss) is assumed to be
A) allocated to general partners first.
B) allocated based on capital contribution.
C) held within the partnership.
D) allocated equally.

Question

Quizplus · Accepted Answer

In the absence of a specific agreement, profits and losses in a partnership are assumed to be divided equally among the partners, regardless of their individual capital contributions or involvement in the business. This is a general rule of partnership law intended to ensure fairness among partners.

If Division of Profits in a Partnership Is NOT Specified