The division of profits and losses among the members of a partnership is formalized in the
A)indemnity clause.
B)partnership agreement.
C)statement of purpose.
D)indenture contract.
E)group charter.

Question

Quizplus · Accepted Answer

The formalized agreement that outlines the division of profits and losses among the members of a partnership is called the partnership agreement. This agreement is a legally binding document that establishes the rights and responsibilities of each partner and outlines how the profits and losses will be shared among them. It is an essential document for every partnership and is typically prepared by a lawyer or an accountant. The other choices listed are not directly related to the division of profits and losses in a partnership, making B the correct answer.

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