White,Gray,and Greene enter into a contract to form a partnership,but the contract says nothing about the sharing of profits and losses.Which of the following will take place?
A) Profits and losses will be shared in a ratio based on the dollar amount of their capital investments.
B) Profits will be shared equally;losses will be absorbed based on dollar amount of capital investment.
C) Profits will be based on amount of time each partner spends working for the firm;losses will be shared equally.
D) Profits and losses will be shared equally.

Question

Quizplus · Accepted Answer

In the absence of a specific agreement, partnership laws typically dictate that profits and losses are shared equally among partners, regardless of the amount of capital investment or time spent working for the firm.

White,Gray,and Greene Enter into a Contract to Form a Partnership,but