PRC-1 · Chapter 10 · Question 53 of 100
In the absence of a formal partnership agreement, how are profits and losses shared among partners according to the Partnership Act?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Equally among all partners.
Explanation
According to the Partnership Act, if there is no prior agreement specifying a profit-sharing ratio, profits and losses must be distributed equally among the partners.
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