Instructions: Place the letter of the correct answer in the blank.
		1. If a partnership agreement is silent on dividing net income or net losses, the partners:
		a. divide income/losses according to their original capital investments
		b. divide income/losses equally
		c. divide income/losses according to skills possessed by each partner
		d. divide income/losses on the basis of individual time devoted to the business
		2. Which of the following is not an advantage of a partnership?
		a. It is possible to bring together more capital than in a sole proprietorship
		b. Partners' income taxes may be less than the income taxes would be on a corporation
		c. It is possible to bring together more managerial skills than in a sole proprietorship
		d. Each partner has limited liability
		3. When a new partner is admitted to the partnership by a contribution of assets to the partnership:
		a. neither the total assets nor the total owner's equity of the business is affected
		b. only the total assets are affected
		c. only the owner's equity is affected
		d. both the total assets and the total owner's equity are increased
		4. C, D, and E share income and losses on a ratio of 1:2:2 according to their partnership agreement.
		If the partnership earned a net income of $80,000, how much is allocated to D's capital?
		a. 16,000
		b. 26,666
		c. 32,000
		d. 40,000