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JAMB Commerce 1995 Question 5

Question 5

Business Units

If a partnership deed is silent on how profits are to be shared, partners share profits

  1. A.in the ratio of the value of business secured by each partner for the partnership
  2. B.in the ratio of partners' capital contributions
  3. C.in an equal proportion, irrespective of partners' capital contributions
  4. D.according to duties performed by each partner.
Show the answer and explanation

Answer: C (in an equal proportion, irrespective of partners' capital contributions)

Explanation

Under the Partnership Act, if there is no agreement, profits and losses are shared equally.