The division of partnership profits on the basis of salaries,interest,and a stated ratio is usually necessary because
A)partners seldom contribute time,effort,and resources equally.
B)this prevents arguments among the partners.
C)this reflects the amount of time devoted to the partnership by the partners.
D)most states require this method of distribution.

Question

Quizplus · Accepted Answer

Partners often have different levels of contribution to a partnership in terms of time, effort, and resources. Therefore, dividing profits on the basis of salaries, interest, and a stated ratio helps to ensure that each partner receives a fair share of the profits based on their individual contributions.

The Division of Partnership Profits on the Basis of Salaries,interest,and