Which of the following statements about partnerships is INCORRECT?
A) Partnership assets are co-owned by partners.
B) If a partnership is terminated, the assets do not legally revert to the original contributor.
C) If the partnership agreement does not specify the manner in which profit is to be shared, it is distributed according to capital contributions.
D) Each partner has a claim on assets equal to the balance in the partner's capital account.

Question

Quizplus · Accepted Answer

In the absence of a specific agreement, profits in a partnership are shared equally among partners, not according to their capital contributions. This is a general rule in partnership law to ensure fairness among partners, regardless of the size of their individual investments.

Which of the Following Statements About Partnerships Is INCORRECT