In the absence of partnership agreement, profits and losses are shared
Question 1 Report
In the absence of partnership agreement, profits and losses are shared
Answer Details
In the absence of a partnership agreement, profits and losses are shared equally among the partners. This is based on the assumption that all partners contribute equally to the partnership, regardless of their individual capital contributions or the amount of work they put in. However, if there is a partnership agreement in place, it may specify a different method for allocating profits and losses, such as in the ratio of capital contributions or based on the amount of work each partner contributes to the partnership.
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