Alphonzo has agreed to become a partner in his brother's new clothing store and has provided 30 percent of the start-up capital for Remora's Clothiers.Since he provided 30 percent of the money to start the firm,he is entitled to 30 percent of any the profits the firm earns during its first year of operations.

Question

Quizplus · Accepted Answer

Profit-sharing agreements in partnerships are not automatically determined by the percentage of capital contribution unless explicitly stated in the partnership agreement.

Alphonzo Has Agreed to Become a Partner in His Brother's