Describe "distributive share" in a partnership.

The term "distributive share" refers specifically to the portion of profits or losses that is allocated to each partner within a partnership. In essence, when a partnership earns a profit or incurs a loss, this financial outcome is distributed among the partners according to the terms set forth in their partnership agreement. This allocation can be based on various factors, such as the partners' investment in the partnership, their level of involvement, or pre-agreed percentages.

The concept is fundamental to understanding how partnerships operate, as it directly impacts the financial return each partner receives from their collective business activities. The distributive share is not fixed or determined by external factors, but rather it reflects each partner's stake and participation in the partnership's success or failure. This is distinct from other terms mentioned in the options, which relate to salaries or fixed payments and do not reflect the variable nature of profit-sharing among partners.