Question $41$

$1\mathrm{.}43$ pts

White, Gray, and Greene enter into a contract to form a general partnership, but the partnership agreement says nothing lbout the sharing of profits and losses. Which of the following will take place?

Profits and losses will be shared in a ratio based on the dollar amount of their capital investments.

Profits will be shared equally; losses will be shared based on dollar amount of capital investment.

Profits will be based on amount of time each partner spends working for the firm; losses will be shared equally.

Profits will be shared equally; losses will be shared equally.