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What is the benefit of clearly specifying the division of work in a partnership deed?

Answer and explanation

Correct answer: Each partner's responsibility is clearly defined

Specifying division of work in the deed sets out each partner’s duties, authority limits and reporting lines. This reduces conflicts, improves management efficiency and makes it easier to hold partners accountable for tasks. Option D is incorrect because division of work does not change profit-sharing unless the deed separately specifies profit ratios; B and C are irrelevant consequences. Exam tip: always record duties, authority, remuneration and profit-sharing clauses clearly in the deed to avoid future disputes and confusion.

Related tags

Partnership AccountsPartnership DeedDivision Of WorkResponsibilityManagementPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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