Sherry and Jim entered into a partnership agreement. However, the agreement did not state how income and losses would be divided. The law states that income will be divided:
A) equally.
B) according to investments.
C) according to abilities.
D) None of these answers is correct.

Question

Quizplus · Accepted Answer

In the absence of a specific agreement, partnership law typically dictates that profits and losses are to be shared equally among partners, regardless of the amount of capital or effort each partner has contributed.

Sherry and Jim Entered into a Partnership Agreement