In the absence of a partnership agreement, the law says that income (and loss) should be allocated based on:
A) A fractional basis.
B) The ratio of capital investments.
C) Salary allowances.
D) Equal shares.
E) Interest allowances.

Question

Quizplus · Accepted Answer

In the absence of a partnership agreement specifying otherwise, the law typically dictates that income and loss should be allocated equally among partners, regardless of the ratio of their capital contributions or any other factors.

In the Absence of a Partnership Agreement, the Law Says