Which of the following statements is true ofpartnerships?

If the partners have no partnership agreement specifying how to divide profits andlosses, then they share profits and losses equally.

B.

The profit sharing is always based on eachpartner's capital balances and any losses will be shared equally.

C.

It is legally required to share the profit and lossesequally, irrespective of the partnership agreement.

D.

The stated ratio of profit sharing needs to be approved by the SEC.