A Partnership Agreement Defines How the Partners Will Be Compensated

Multiple Choice

A partnership agreement defines how the partners will be compensated. Normally, ________.

A) partners are not entitled to salaries or wages, but are compensated by a share of the profits of the business
B) the general partner's salary is set at two times the salaries of the limited partners
C) both general and limited partners are permitted salaries, but all silent or dormant partners are compensated only by sharing in the profits
D) while the agreement establishes payout schedules, it does not spell out what constitutes profit