Question

Partners must share profits and losses equally. (State True or False)

Answer 1

Answer:

The statement mentioned in the question is false.

Explanation:

The amount of loss or profit should be divided among the business partners on the basis of their investment amounts.

If the policy of equal division is applied then the partner who invested smaller amount of money will face a greater amount of loss than the other partners in terms of investment and return ratio. (Same thing is applicable for the profit scenario also)

Answer 2

Answer:

• I think this answer is F = false because they can share benefits in any ratio as decided