Multiple choice

In the absence of any explicit agreement about profit sharing, profits and losses are shared between partners in the ratio of

  1. capitals

  2. loans given to the firm by them

  3. 1 : 1 : 1

  4. 1 : 2 : 3

  5. None of these

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Correct; when no agreement is there, profits are equally shared or are shared in the ratio of 1 : 1 : 1.