In the absence of a written partnership agreement, how may partners choose to distribute profits?

The correct approach for distributing profits among partners in the absence of a written partnership agreement is to divide them equally among all partners. This principle is rooted in partnership law, which typically dictates that unless otherwise agreed upon, partners share profits equally.

When a partnership agreement is not present, the default rule assumes equal sharing as a fair and reasonable method, promoting equality and discouraging disputes among partners. This uniform distribution reflects the idea that every partner contributes to the partnership’s success, whether it be through labor, investment, or ideas.

While a majority vote, initial capital contributions, or legal mandates could apply under different circumstances or specific provisions in certain jurisdictions, the fundamental assumption in the absence of any agreement is to share profits equally. This helps maintain a balance among partners and encourages shared responsibility for the business's outcomes.