Asked by
Olivia Chalk
on Nov 21, 2024Verified
Which of the following statements represents a partner's right to an interest in the partnership?
A) A partner has no right to an interest in the partnership.
B) The right is composed only of the partner's share of profits.
C) The right is composed only of the partner's right to return of capital contributed by the partner.
D) The right is composed only of the partner's right to return of capital contributed by the partner and any wages due.
E) The right is composed of a combination of the partner's share of the profits and a return of capital contributed by the partner.
Interest in the Partnership
Refers to a partner’s share or stake in both the assets and profits (or losses) of a partnership, often governed by a partnership agreement.
Share of Profits
A proportion of the profits earned by a business that is allocated to an individual or entity, often based on ownership interest.
- Gain insight into the methods partnerships utilize to govern property rights and allocate profits.
Verified Answer
HP
Learning Objectives
- Gain insight into the methods partnerships utilize to govern property rights and allocate profits.
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