Lisa and Aron own a partnership that provides rental equipment for parties and special occasions. Which of the following is true about the way Lisa and Aron would handle company profits?
A) automatically split the profits, with 50% for Lisa and 50% for John
B) divide the profits according to each person's investment in the business
C) distribute the profits according to the terms of the partnership agreement
D) split the profits according to how many hours each person worked

Question

Quizplus · Accepted Answer

Partnerships typically have a partnership agreement that outlines how profits will be distributed among the partners. It is important for Lisa and Aron to follow the terms of their agreement to ensure fairness and avoid disputes.

Lisa and Aron Own a Partnership That Provides Rental Equipment