In which of the following is not stated in the partnership agreement?

  • A Profit sharing ratio
  • B Interest on capital
  • C Interest on fixed asset
  • D Purpose of partnership

The correct answer is D. Purpose of partnership

Although each partnership agreement differs based on business objectives, certain terms should be detailed in the document, including percentage of ownership, division of profit and loss, length of the partnership, decision making and resolving disputes, partner authority, and withdrawal or death of a partner.

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