A partnership agreement sets how the partners will be compensated.Normally:
A)partners are not entitled to salaries or wages,but are compensated by a share of the profits of the business.
B)the general partner's salary is set at 2 times the salaries of the limited partners.
C)both general and limited partners are permitted salaries,but all silent or dormant partners are compensated only by sharing in the profits.
D)while the agreement establishes payout schedules,it does not spell out what constitutes profit.

Question

Quizplus · Accepted Answer

Partners in a partnership are typically compensated by a share of the profits of the business, rather than a salary or wage. This is the most common arrangement outlined in a partnership agreement.

A Partnership Agreement Sets How the Partners Will Be Compensated