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The proportion in which partners share profits, in the absence of agreement, bears what relation to their capital contributions?
AProfits follow seniority
BProfits are shared in the ratio of capital
CProfits follow hours worked
DNo connection — profits are shared equally regardless of capital contributed
Answer & Solution
Correct answer: D. No connection — profits are shared equally regardless of capital contributed
There is no connection between the profit-sharing ratio and capital contribution; in the absence of agreement profits are shared equally.
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