The right to share in the profits of the partnership is considered to be the right to share in the earnings from the investment of capital.

Question

Quizplus · Accepted Answer

This is a correct statement about the right to share in the profits of a partnership. It implies that partners expect to receive a return on their investment and that the profits generated by the partnership are a result of the capital deployed by them. Profit sharing is a fundamental aspect of the partnership agreement and is typically determined by the partners' capital contributions, ownership percentage or some other formula agreed upon in the partnership agreement.

The Right to Share in the Profits of the Partnership