Final answer:
The statement regarding the distribution of profits and losses in a general partnership is true; profits and losses are typically shared in the same proportion unless specified otherwise. Partners are personally liable for the business's debts, and the partnership is affected by the change of partners.
Step-by-step explanation:
The statement that 'profits or losses shall be distributed in conformity with the agreement' and 'if only the share of each partner in the profits has been agreed upon, the share of each in the losses shall be in the same proportion' is typically true in the context of general partnerships laws. In a general partnership, partners agree to share in profits and, unless otherwise stated, losses are assumed to be shared in the same proportion. Additionally, each partner is personally liable for the business's debts, which could lead to personal asset loss in case of bankruptcy or a lawsuit. This reflects one of the major disadvantages of general partnerships, which includes joint and several liability where partners are responsible for each other’s actions, and the fact that partnerships have a limited life, changing upon the departure or death of a partner.