The profit for a partnership must be distributed:
A) according to the partnership agreement.
B) equally among the partners.
C) according to the workload contribution of each partner.
D) according to the capital contributions of each partner.

Question

Quizplus · Accepted Answer

The distribution of profits in a partnership is determined by the partnership agreement. It may be agreed upon by the partners how the profits will be allocated based on individual contributions, workload, or capital contributions. Therefore, option A is the best choice as it allows for flexibility and agreement among the partners.

The Profit for a Partnership Must Be Distributed