A distribution in a partnership may be:
A) a payment made to compensate a partner for services rendered to the partnership.
B) a division of profits.
C) repayment of a loan to a partner.
D) All of these are types of distributions in partnerships.

Question

Quizplus · Accepted Answer

All of the choices listed are types of distributions in partnerships. A distribution can be a payment made to compensate a partner for services rendered to the partnership, a division of profits, or repayment of a loan to a partner. Partnerships have flexibility in how they distribute profits and expenses, and the terms should be agreed upon in the partnership agreement.

A Distribution in a Partnership May Be