1.

This partner does not share in the losses incurred by the partnership

a. Limited partner
b. General partner
c. Industrial partner
d. General partner

2. All may be given to a partner whether the operation is a net profit or net loss, except

a. Salaries
b. Bonus
c. Interest
d. Regular drawings

3. This is the most equitable way of distributing profit

a. Average capital
b. Beginning capital
c. Ending capital
d. Original capital

4. A and B are partners, but only A is the managing partner. Both contributed equal assets. The
best profit-sharing ratio will be

a. Equally
b. Salary A and B, remaining profit to be shared equally
c. Salary to A, remaining profit to be shared equally
d. 1:1 ratio

5. Properties contributed by the partners should be recorded at

a. Acquisition cost
b. Fair market value
c. Book value
d. Historical cost