The basis on which profits and losses are to be shared is a matter of agreement between the partners and not necessarily the same as their investment ratio.
Correct Answer:
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Q1: If the partnership agreement does not state
Q2: Partnerships are not subject to federal income
Q4: Only one partner can be individually liable
Q5: It is desirable that a partnership agreement
Q6: A written agreement containing the various provisions
Q7: Partner compensation is reported on the income
Q8: Since partners' salaries are not treated as
Q9: If one partner contributes an asset to
Q10: If the partnership cannot pay a bill,
Q11: Assuming there are no known bad debts
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