Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 18 - No. 31)

Which aspect of a partnership is most directly influenced by the partnership agreement?
The company's revenue
The day-to-day operational costs
How profits and losses are divided among the partners
The type of business structure.

Explanation

The partnership agreement outlines the profit-sharing ratio, determining how profits and losses are divided.

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