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In a partnership, how are profits distributed among partners?  A. According to the partnership agreement  B. Equally among all partners  C. Proportionate to the capital contributed  D. Equally among all employees

Question

In a partnership, how are profits distributed among partners?  A. According to the partnership agreement  B. Equally among all partners  C. Proportionate to the capital contributed  D. Equally among all employees

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Solution

The distribution of profits in a partnership can be done in several ways, depending on the agreement between the partners. Here are the options you provided:

A. According to the partnership agreement: This is often the case. The partners may agree on a specific distribution ratio, which is then documented in the partnership agreement. This could be based on the amount of capital each partner has contributed, the amount of work each partner does, or any other factors the partners agree on.

B. Equally among all partners: This is

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