In regards to the rights of partners to share in profits, if the partnership agreement does not establish how the partnership will distribute profits,
A) distribution of profits is suspended until a court can allocate the proper distribution amount.
B) partners share in profits in proportion to the amount of capital contributed to the partnership.
C) partners share in profits in proportion to their status as senior, full, associate or junior status in the partnership.
D) all partners have a right to a share in the profits equally.
E) the partnership must allocate profits based only on a written agreement.

Question

Quizplus · Accepted Answer

In the absence of a specific agreement, partners share in the profits equally regardless of the amount of capital each has contributed. This is a general rule in partnership law to ensure fairness among partners.

In Regards to the Rights of Partners to Share in Profits