A stipulation which excludes one or more partners from any share in the profits or losses is valid.Group of answer choicesTrueFalse

Agreement to share in both profits and losses is a prima facie evidence of the existence of a partnership.Group of answer choicesTrueFalse

Among the various options available for determining the partners’ share of profit are as follows EXCEPT:Group of answer choicesStated fraction or ratioLoans to the partnershipCapital contributionsCapital contributions and service to the partnership

Read the following statements: Assertion (A) and Reason (R). Choose the correct alternativefrom those given below.Assertion: Michael, Mike and Stephen were partners sharing profits and losses in the ratio 3:2:1.Stephen being a partner wants that he should be exempted from sharing the losses in the firm.Reasoning: According to Partnership Act 1932,”It may be agreed between the partners that oneor more of them shall not be liable for losses.”Alternatives:(a) Both A and R are correct, and R is the correct explanation of A.(b) Both A and R are correct, but R is not the correct explanation of A.(c) A is correct but R is incorrect.(d) A is incorrect but R is correct

In the absence of a partnership agreement, profits and losses are shared by partners:a.Equallyb.According to their capital contributionsc.According to their time and effort investedd.In proportion to their agreed ratio

In a partnership, how are the profits and losses typically shared among the partners? Question 4Answer a. determined by a separate agreement b. equally c. proportionate to their initial investment d. based on the number of partners