Partners may agree that the most equitable method of allocating profits and losses is to base salaries on the services rendered by each partner.

Question

Quizplus · Accepted Answer

If partners agree to allocate profits and losses based on the services rendered by each partner, it is considered an equitable method. This can be done by basing each partner's salary on their contribution to the partnership.

Partners May Agree That the Most Equitable Method of Allocating