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Question
In the absence of an agreement, partners are entitled to ___________.
In the absence of an agreement, partners are entitled to ___________.
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Solution
The correct option is C Interest on Loans and Advances
A partnership deed is a written legal document to avoid unnecessary misunderstanding,
harassment and unpleasantness among the partners in the event of any dispute.
Partners can make or insert
clauses in their partnership deed.
In case if partner does not
make agreement or deed, then partners are entitled for interest on loans and
advances and their profit sharing ratio will be equal. They are not entitled
for salary and commission.
A partnership deed is a written legal document to avoid unnecessary misunderstanding, harassment and unpleasantness among the partners in the event of any dispute.
Partners can make or insert clauses in their partnership deed.
In case if partner does not make agreement or deed, then partners are entitled for interest on loans and advances and their profit sharing ratio will be equal. They are not entitled for salary and commission.
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