Lisa and John Own a Partnership That Provides Rental Equipment

Multiple Choice

Lisa and John own a partnership that provides rental equipment for parties and special occasions.Which of the following is true about the way Lisa and John would handle company profits?

A) They automatically split the profits, with 50 percent for Lisa and 50 percent for John.
B) They would do nothing because partnerships require that profits remain in the business.
C) They would divide the profits according to each person's investment in the business.
D) They would distribute the profits according to the terms of the partnership agreement.
E) They would split the profits according to how many hours each person worked.