Concept:A partnership deed is a written agreement that defines the rules and conditions under which partners operate the business together.
Explanation:The deed records the rights, duties, and obligations of each partner.
It normally specifies how profits or losses will be shared among the partners.
This sharing ratio is essential to avoid disputes during the partnership.
The deed may also state initial capital contributions, but not necessarily “annual” fixed contributions.
Salaries to employees and guaranteed annual profit are not typical contents of a partnership deed.
Therefore, the most appropriate provision stated in a partnership deed is the profit and loss sharing arrangement.
Answer:A. how profits or losses are to be shared