Question

Genetic Innovations, LP, is a limited partnership. The partners sign an agreement purporting to state how the firm’s profits and losses are to be divided. The profits and losses of the firm will be divided.

a.according to the agreement.

b.equally, despite the agreement.

c.in proportion to capital contributions, despite the agreement.

d.in proportion to each partner’s participation in the firm’s management, despite the agreement.

Answer 1

Answer:

a. according to the agreement.

Explanation:

Profits or losses, made by a partnership firm shall be divided among its partners in accordance with terms specified in the agreement.

However, in absence of any written or oral agreement among the partners, profits and losses shall be distributed equally among the partners.