Florida Broker Practice Exam

Which of the following statements regarding general partnerships is true?

1. Only one partner can make decisions

2. Partners share profits according to their agreement

3. General partnerships have no liabilities

4. Sales associates can be partners

The correct answer is: Partners share profits according to their agreement

In a general partnership, partners share profits according to the terms outlined in their partnership agreement. This structure allows for flexibility; partners can agree on how profits and losses will be distributed, which may not necessarily be equal. This aligns with the fundamental concept of partnerships, where each partner typically contributes assets or skills and shares in the outcome based on mutual consent. The other statements highlight common misconceptions about partnerships. General partnerships inherently involve shared liability among partners for business obligations, which contradicts the notion that they have no liabilities. Furthermore, while partners can be active in management and decision-making, it is not limited to just one partner; all partners typically have a say unless stated otherwise in the agreement. Lastly, it is important to note that sales associates, who may not have the required licensing or partnership authority, are not automatically qualified to be partners in a brokerage without meeting specific legal requirements.