Final answer:
Profits or losses are not automatically divided equally among partners in a partnership, unless specified in the partnership agreement.
Step-by-step explanation:
The statement is false.
Profits or losses in a partnership are typically divided based on the agreed-upon partnership agreement, which can vary among partners. While some partnerships may choose to distribute profits or losses equally among partners, it is not a requirement unless specifically stated in the partnership agreement. Therefore, unless the partnership agreement specifies otherwise, profits or losses are not automatically divided equally.
For example, in a partnership agreement, it could be stated that one partner receives a larger share of the profits due to their higher investment or contribution to the business, while another partner may receive a smaller share. This allocation of profits or losses is determined by the terms agreed upon in the partnership agreement and can differ from partner to partner.