5. Which of the following does not cause the dissolution of the company? a. Admission of a new member b. Withdrawal of a partner c. Divorce of a partner d. Death of a partner 6. When a partnership is formed, the assets initially invested by the partners are recorded at their: a. Historical costs b. Market values c. book values d. adjusted costs

In the absence of an agreement for the Company, profits (net income) or losses (net loss) must be distributed on the basis of: a. fractional basis b. the ratio of capital investment c. salary concessions d. in equal parts