alleryRegarding profits and losses in a partnership:
ANeither is essential
BSharing of profits is essential, but an agreement to share losses is not essential
COnly sharing of losses is essential
DSharing of both profits and losses is essential
Answer & Solution
Correct answer: B. Sharing of profits is essential, but an agreement to share losses is not essential
Sharing of profits is essential
sharing of losses is not, and a partner may even be exempted from losses by agreement (losses otherwise borne in the profit-sharing ratio).
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