Distribution of Profit and Loss Q&A

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on March 12, 2023

1. What is a partnership?

2. Name four of the essential elements of a partnership.

3. Name four advantages of partnerships.

4. How many types of partners are there in a partnership business?

5. Define the following:
1. Active partner
2. Sleeping partner
3. Nominal partner

6. What is a partnership deed/agreement?

7. Describe the methods used to maintain the capital account in a partnership business.

8. What is the capital ratio?

9. What is goodwill?

Distribution of Profit and Loss Q&A FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.