The division of proﬁts and losses among 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 partnership agreement formalizes the division of profits and losses among the members of a partnership, as well as other important aspects such as contributions, management, dissolution, etc. Indemnity clause primarily deals with liability protection, indenture contract is a type of bond agreement, statement of purpose is a document outlining the goals and objectives of an organization, and group charter is a document outlining the rules and procedures of a group or organization.

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