3 Questions
Which of the following best defines profit sharing ratio?
The percentage of profit that each partner receives in a partnership
What does profit sharing ratio determine in a partnership?
The amount of profit that each partner receives
In a partnership, if the profit sharing ratio is not explicitly mentioned, how is the profit usually distributed?
Based on the amount of capital invested by each partner
Test your knowledge on profit sharing ratios in partnerships with this quiz! Learn about the definition of profit sharing ratio, its importance in determining profit distribution, and what happens when the ratio is not explicitly mentioned.
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