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Which of the Following Is True of the Distribution of Profits

Question 53

Multiple Choice

Which of the following is true of the distribution of profits earned by a partnership?


A) They are distributed equally irrespective of the capital provided by each partner.
B) They are distributed based on the work each partner puts into the business.
C) They are distributed based on the credit rating of each partner.
D) They are distributed in the proportions specified in the articles of partnership.
E) They are distributed as per the guidelines in articles of incorporation.

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