Final answer:
The allocation of profit or loss to partners on the basis of interest alone is possible but not standard; responsibilities in a general partnership extend beyond distributing profits. The idea that Proprietors of a proprietary colony have no responsibilities except profit collection is false, as they had governance roles as well. The correct option is 2.
Step-by-step explanation:
The allocation of profit or loss to partners based solely on interest is possible, but it's not a standard practice. In general partnerships, profits and losses are typically shared among partners according to their agreed-upon percentages in the partnership agreement.
This distribution can take various factors into account, not just capital interest, including the amounts of time, effort, or resources that each partner contributes. In a fixed-interest scenario, this rule would differ, allowing for the possibility to allocate profits or losses based on predefined interest rates.
It should be noted that partners in a general partnership also have responsibilities beyond profit collection, such as liability for business debts and the duty to contribute to losses if needed.
Regarding the proprietary colony, the statement that Proprietors have no responsibilities except to collect profits is false. The Proprietors of a proprietary colony had responsibilities such as managing the colony's affairs, governance, and ensuring the well-being of its inhabitants alongside seeking profit.
This governance structure is part of the historical establishment of colonies, especially during the era of European expansion.