Question

Partnership profits and losses are divided among partners according to their sharing agreement. If no sharing agreement exists, profits or losses are divided equally.

1. true
2. false

Answer 1

In a partnership, profits and losses are divided among partners based on their sharing agreement. If no sharing agreement exists, profits or losses are divided equally among the partners.

Step-by-step explanation:

True

In a partnership, profits and losses are divided among partners based on their sharing agreement. If no sharing agreement exists, profits or losses are divided equally among the partners. This means that each partner will receive an equal share of the profits or bear an equal share of the losses.

For example, if there are two partners in a business and they have an equal sharing agreement, each partner will receive 50% of the profits. If there is no sharing agreement, each partner will still receive 50% of the profits.