Ray and Mohammed are forming a general partnership but have not yet discussed how profits will be shared between them.Which statement best describes their legal situation?
A) General partners are always required to share profits equally.
B) They are automatically entitled to a share proportional their relative contributions to the capital of the partnership.
C) They cannot have a partnership until they determined how profits will be shared.
D) If they fail to agree,partnership legislation requires them to share profits equally.

Question

Quizplus · Accepted Answer

In the absence of a specific agreement on profit sharing, general partnership law typically defaults to an equal distribution of profits among partners, regardless of their individual contributions to the partnership.

Ray and Mohammed Are Forming a General Partnership but Have