Which of the following is true of profits and losses in a general partnership?
A. By law, it is presumed that the proportion of profits shared is equal to the general partner's initial investment.
B. Unless otherwise agreed, losses are shared equally by all general partners.
C. The general partner who proposed the idea of the business receives the greatest share of profits.
D. The proportion of investment governs only the proportion of losses shared and not profits obtained.
Answer: B
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