The partnership deed normally specifies?

A. how profits or losses are to be shared
B. the capital to be contributed annually
C. how salaries are paid to employees
D. the profit that should be earned annually

Correct Answer:

Option A – how profits or losses are to be shared

Explanation

A partnership deed is a document containing an agreement that details the rights and obligations of each partner participating in a venture. For example, a deed of partnership could specify how proceeds from the partnership’s business are to be divided among the partners.