If the partnership agreement does not state how profits and losses will be divided,then by law,partners must share profits and losses:

Question

Quizplus · Accepted Answer

If the partnership agreement does not specify how profits and losses will be divided, partners are required to share them equally by law. This is known as the "default rule". Therefore, option A is the correct answer. Options B, C, and D are incorrect, as they suggest alternative methods of profit and loss distribution that would only apply if specified in the partnership agreement.

If the Partnership Agreement Does Not State How Profits and Losses