The division of proﬁts and losses between the members of a partnership is formalized in the:
A) Indemnity clause.
B) Indenture contract.
C) Statement of purpose.
D) Partnership agreement.
E) Group charter.

Question

Quizplus · Accepted Answer

The division of profits and losses between the members of a partnership is formalized in the partnership agreement, which outlines the terms and conditions of the partnership, including the contributions of each member, the management structure, and the division of profits and losses. The other options, such as the indemnity clause, indenture contract, statement of purpose, and group charter, may be included in the partnership agreement but do not specifically address the division of profits and losses.

The Division of Proﬁts and Losses Between the Members of a Partnership