Where there is no partnership agreement, a partner who advances loan to the partnership is entitled to ____ Interest
- 2%
- 15%
- 10%
-
5%
The correct answer is: D
Explanation
In the absence of a partnership agreement specifying otherwise, a partner who advances a loan to the partnership is typically entitled to interest at the rate prescribed by the laws of the relevant jurisdiction. While this can vary depending on the jurisdiction, a common default rate is 5%.