The basis on which profits and losses are shared is governed by:
A) the SEC.
B) the IRS.
C) the partnership agreement.
D) the partners and must be shared equally.

Question

Quizplus · Accepted Answer

The basis on which profits and losses are shared among partners in a partnership is governed by the partnership agreement. This agreement outlines how profits and losses will be divided among the partners, which can vary greatly depending on the terms set forth by the partners themselves.

The Basis on Which Profits and Losses Are Shared Is