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The Partnership Deed normally specifies


Question

The Partnership Deed normally specifies

Options

A)
how profit or losses are to be shared
B)
the capital to be contributed annually
C)
how salaries are paid to employees
D)
the profit that should be earned annually

The correct answer is A.

Explanation:

A partnership deed, also known as a partnership agreement, is a document that outlines in detail the rights and responsibilities of all parties to a business operation as well as how profit or losses are to be shared. It has the force of law and is designed to guide the partners in the conduct of the business. It is helpful in preventing disputes and disagreements over the role of each partner in the business and the benefits which are due to them.


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Dicussion (1)

  • A partnership deed, also known as a partnership agreement, is a document that outlines in detail the rights and responsibilities of all parties to a business operation as well as how profit or losses are to be shared. It has the force of law and is designed to guide the partners in the conduct of the business. It is helpful in preventing disputes and disagreements over the role of each partner in the business and the benefits which are due to them.

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