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Which of the Following Is Correct Regarding How the Partnership

Question 39

Multiple Choice

Which of the following is correct regarding how the partnership losses should be allocated?


A) Losses would be allocated first based on a judicial determination as to whether losses should be allocated to a partner because of poor decisions, and, if not, then equally.
B) Losses would be allocated in proportion to the amount of work done in the business, with a partner who contributed more work being allocated less in the way of losses.
C) Losses would be allocated in proportion to the right to share in management.
D) Losses would be allocated equally.
E) Losses would be allocated in proportion to the capital contribution, with partners who contributed more capital being allocated less in the way of losses.

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